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Macroeconomic Policies of the Economic and Monetary Union: Theoretical Underpinnings and Challenges Philip Arestis and Malcolm Sawyer, The Levy Economics Institute and Leeds University Abstract This paper presents two issues: first, an effort to decipher the type of economic analysis and...
Persistent link: https://www.econbiz.de/10005076715
The consumer has been on a tightrope since the bursting of the "new economy" bubble, as losses in equity markets have been partly offset by gains in real estate and fiscal support and mortgage refinancing have partly offset increased consumer cautiousness. The consumer will remain on a tightrope...
Persistent link: https://www.econbiz.de/10005408134
The anemic U.S. economic recovery and the threat of a double-dip recession stem from the weakness of investment, due to ….e., the all-time-high indebtedness in the face of falling asset prices) are preventing investment from picking up and are …
Persistent link: https://www.econbiz.de/10005408108
excess of private savings over investment at the desired level of economic activity. The paper outlines the "functional …
Persistent link: https://www.econbiz.de/10005408077
Recent developments in macroeconomic policy, in terms of both theory and practice, have elevated monetary policy while downgrading fiscal policy. Monetary policy has focused on the setting of interest rates as the key policy instrument, along with the adoption of inflation targets and the use of...
Persistent link: https://www.econbiz.de/10005408097
Current monetary policy involves the manipulation of the Central Bank interest rate (the repo rate), with the specific objective of achieving the goal(s) of monetary policy. The latter is normally the inflation rate, although in a number of instances this may include the level of economic...
Persistent link: https://www.econbiz.de/10005076687
Since the early 1990s, a number of countries have adopted Inflation Targeting (IT) in an effort to reduce inflation. Most literature has praised IT as a superior framework of monetary policy. We suggest that IT is a major policy prescription closely associated with the New Consensus...
Persistent link: https://www.econbiz.de/10005561314