Principles for Economic Stimulus - Center on Budget and Policy
... increases. State governments have already acted to close budget deficits of approximately $50 billion for state fiscal year 2003 (which runs through June 30, 2003 in most states) and face additional deficits they must close of about $17.5 billion in 2003. In addition, states face further budget defi ...
... increases. State governments have already acted to close budget deficits of approximately $50 billion for state fiscal year 2003 (which runs through June 30, 2003 in most states) and face additional deficits they must close of about $17.5 billion in 2003. In addition, states face further budget defi ...
Lessons from the Economic Crisis
... The participants in this afternoon’s panel will able cover this terrain, and indeed our two plenary speakers, Harry Harding and Fred Bergsten, are likely to do so as well. And I’m nearly out of time! But there are some obvious questions to ask here. First: In the first week after the markets collap ...
... The participants in this afternoon’s panel will able cover this terrain, and indeed our two plenary speakers, Harry Harding and Fred Bergsten, are likely to do so as well. And I’m nearly out of time! But there are some obvious questions to ask here. First: In the first week after the markets collap ...
PDF
... systems in the twenty-first century. It will, however, require a turn away from conventional macroeconomics. (Harris, 2009) To explore whether such a synthesis might be possible, it is important to reconsider the essential vision of Keynes concerning the causes of economic disruptions such as recess ...
... systems in the twenty-first century. It will, however, require a turn away from conventional macroeconomics. (Harris, 2009) To explore whether such a synthesis might be possible, it is important to reconsider the essential vision of Keynes concerning the causes of economic disruptions such as recess ...
Document
... supposed to be a solved problem, one that may have bedeviled our grandfathers but wasn’t going to come back. • Economists thought we had macroeconomic policymaking under control. Demand management was assigned to technocrats at independent central banks while fiscal policy focused on long-run issues ...
... supposed to be a solved problem, one that may have bedeviled our grandfathers but wasn’t going to come back. • Economists thought we had macroeconomic policymaking under control. Demand management was assigned to technocrats at independent central banks while fiscal policy focused on long-run issues ...
The retreat from Keynesian economics
... on egalitarian redistribution generally accepted thinking about national economic management. ...
... on egalitarian redistribution generally accepted thinking about national economic management. ...
Christina D - The University of Chicago Booth School of Business
... stimulus tapers off rather than ends all at once. ...
... stimulus tapers off rather than ends all at once. ...
Economic Policy Vignettes - Georgetown Center for Business and
... power of fiscal policy when it is needed, just as central banks do with monetary policy. The value of checks and balances The difficulty of imposing implicit constraints is political feasibility. Taken to the extreme, this proposal transforms into the notion of creating independent councils that mak ...
... power of fiscal policy when it is needed, just as central banks do with monetary policy. The value of checks and balances The difficulty of imposing implicit constraints is political feasibility. Taken to the extreme, this proposal transforms into the notion of creating independent councils that mak ...
An Investigation into a Reversal of the Keynesian-Neoclassical synthesis. Sarah Rowell
... shown that within this region the fiscal multiplier is small and that monetary policy could be effective in stabilising the economy. However, outside the region the extreme Keynesian position of a large fiscal multiplier and ineffective monetary policy becomes more suitable. This seems to share simi ...
... shown that within this region the fiscal multiplier is small and that monetary policy could be effective in stabilising the economy. However, outside the region the extreme Keynesian position of a large fiscal multiplier and ineffective monetary policy becomes more suitable. This seems to share simi ...
The Debt-Inflation Cycle and the Global Financial Crisis
... economists led by Timothy Besley published a letter in The Sunday Times arguing for a credible fiscal plan to create confidence in the robustness of the UK system. Only by reducing the structural budget deficit, the authors argued, could the confidence of private investors be maintained. Four days l ...
... economists led by Timothy Besley published a letter in The Sunday Times arguing for a credible fiscal plan to create confidence in the robustness of the UK system. Only by reducing the structural budget deficit, the authors argued, could the confidence of private investors be maintained. Four days l ...
Three Keys to Effective Fiscal Stimulus
... The rapidly evolving downturn provides a motivation for timely fiscal stimulus which, if well designed, could raise economic output and create jobs by the middle of 2008. It also provides a motivation for keeping fiscal stimulus temporary. Based on current forecasts, the economy does not need a boos ...
... The rapidly evolving downturn provides a motivation for timely fiscal stimulus which, if well designed, could raise economic output and create jobs by the middle of 2008. It also provides a motivation for keeping fiscal stimulus temporary. Based on current forecasts, the economy does not need a boos ...
Inflation, Unemployment, and Stabilization Policies: Macroeconomic
... Keynes presents his explanation of what was wrong with the economy during the Great Depression in a book titled The General Theory of Employment, Interest, and Money. (Note: I’m not testing on this, but if for some reason the title of the book shows up on the AP exam, think Keynes.) Keynesian econom ...
... Keynes presents his explanation of what was wrong with the economy during the Great Depression in a book titled The General Theory of Employment, Interest, and Money. (Note: I’m not testing on this, but if for some reason the title of the book shows up on the AP exam, think Keynes.) Keynesian econom ...
RIP Clifford F. Thies THE PARADOX OF THRIFT:
... to aggregate demand management may have been the only practical thing to do. Indeed, it is a “myth.. that Keynes alone among leading economists had advocated public works in the Depression” (Demand 1988: 1). lionel Robbins and Friedrich Hayek—who, in accord with the Austrian theory of the business c ...
... to aggregate demand management may have been the only practical thing to do. Indeed, it is a “myth.. that Keynes alone among leading economists had advocated public works in the Depression” (Demand 1988: 1). lionel Robbins and Friedrich Hayek—who, in accord with the Austrian theory of the business c ...
Keynesian Economics
... those on monetary and fiscal (i.e., spending and tax) policy. Some decades ago, economists heatedly debated the relative strengths of monetary and fiscal policy, with some Keynesians arguing that monetary policy is powerless, and some monetarists arguing that fiscal policy is powerless. Both of thes ...
... those on monetary and fiscal (i.e., spending and tax) policy. Some decades ago, economists heatedly debated the relative strengths of monetary and fiscal policy, with some Keynesians arguing that monetary policy is powerless, and some monetarists arguing that fiscal policy is powerless. Both of thes ...
Fiscal Policy
... Fiscal Restraint • At times the economy is expanding too fast and fiscal restraint is more appropriate • Inflationary GDP gap: The amount by which equilibrium GDP exceeds full-employment • Fiscal restraint: Tax hikes or spending cuts intended to reduce (shift) aggregate demand ...
... Fiscal Restraint • At times the economy is expanding too fast and fiscal restraint is more appropriate • Inflationary GDP gap: The amount by which equilibrium GDP exceeds full-employment • Fiscal restraint: Tax hikes or spending cuts intended to reduce (shift) aggregate demand ...
Reviewed - Heterodox Economics Newsletter
... evolved more toward financial stability, though Wood notes that the Bank never accepted Bagehot’s call for making an explicit commitment to act as lender of last resort. Next, Wood describes the history of central banking in the United States, beginning with the first and second Bank of the United S ...
... evolved more toward financial stability, though Wood notes that the Bank never accepted Bagehot’s call for making an explicit commitment to act as lender of last resort. Next, Wood describes the history of central banking in the United States, beginning with the first and second Bank of the United S ...
Keynote address to African Finance Ministers
... demand to reach the potential created by past investment. 3. Much of current expenditure is inappropriate for countercyclical policy because it is long term. 4. Effective countercyclical expenditures use employment intensive techniques that create projects with low capital cost that can be initiated ...
... demand to reach the potential created by past investment. 3. Much of current expenditure is inappropriate for countercyclical policy because it is long term. 4. Effective countercyclical expenditures use employment intensive techniques that create projects with low capital cost that can be initiated ...
T C A F
... which implied that monetary policy was unlikely to provide further stimulus.1 Thus, the Administration, along with many economists and pundits, turned to the other key pillar of stabi‐ lization policy: fiscal stimulus. The fiscal approach was immediately controversial, however, fo ...
... which implied that monetary policy was unlikely to provide further stimulus.1 Thus, the Administration, along with many economists and pundits, turned to the other key pillar of stabi‐ lization policy: fiscal stimulus. The fiscal approach was immediately controversial, however, fo ...
PDF
... For nearly a century, arguments about how to manage the economy have divided economists into two broad camps: Classical and Keynesian. Although the lines of debate are inevitably obscured by opportunism and point scoring, the current election may be seen as a referendum on which of these approaches ...
... For nearly a century, arguments about how to manage the economy have divided economists into two broad camps: Classical and Keynesian. Although the lines of debate are inevitably obscured by opportunism and point scoring, the current election may be seen as a referendum on which of these approaches ...
Chapter 7
... was the result of these government programs? These programs prevented the economy from seeking its equilibrium of full employment and prolonged the depression ...
... was the result of these government programs? These programs prevented the economy from seeking its equilibrium of full employment and prolonged the depression ...
Fiscal Policy
... was the result of these government programs? These programs prevented the economy from seeking its equilibrium of full employment and prolonged the depression ...
... was the result of these government programs? These programs prevented the economy from seeking its equilibrium of full employment and prolonged the depression ...
MGMT510 COURSE OUTLINE File - Faculty of Business and
... CATALOGUE DESCRIPTION : Short-Run fluctuations vs. Long-Run growth of an Economy Growth Domestic Product. Keynesian consumption and saving functions. Determinants of investment and net exports. Determination of equilibrium level of income in simple Keynesian model and the effects of Fiscal policy an ...
... CATALOGUE DESCRIPTION : Short-Run fluctuations vs. Long-Run growth of an Economy Growth Domestic Product. Keynesian consumption and saving functions. Determinants of investment and net exports. Determination of equilibrium level of income in simple Keynesian model and the effects of Fiscal policy an ...
Strange Defeat: How Austerity Economics Lost All the
... failings. But the weakness of these papers invites a broader question: How could the wholesale shift to austerity have been built on such shaky foundations? While some of the blame must go to opportunism by policy makers and confirmation bias by politically motivated researchers, a large share of th ...
... failings. But the weakness of these papers invites a broader question: How could the wholesale shift to austerity have been built on such shaky foundations? While some of the blame must go to opportunism by policy makers and confirmation bias by politically motivated researchers, a large share of th ...
commentary
... For their part, the Republicans, too, have misunderstood many of the basic tenets of their ideological hero, Hayek. Even Ron Paul — like Hayek, a libertarian, not a conservative — fails to grasp the scope of Hayek’s ideas. Hayek, in fact, did not deny that the troika of Keynesian stimulus remedies ...
... For their part, the Republicans, too, have misunderstood many of the basic tenets of their ideological hero, Hayek. Even Ron Paul — like Hayek, a libertarian, not a conservative — fails to grasp the scope of Hayek’s ideas. Hayek, in fact, did not deny that the troika of Keynesian stimulus remedies ...
Chapter 17 ppoint
... immediately in the face of expected changes in policy. Real business cycle theory claims that changes in the rate of growth of total factor productivity are the main cause of business cycles. Both of these versions of new classical macroeconomics received wide attention and respect, but policy maker ...
... immediately in the face of expected changes in policy. Real business cycle theory claims that changes in the rate of growth of total factor productivity are the main cause of business cycles. Both of these versions of new classical macroeconomics received wide attention and respect, but policy maker ...
2008–09 Keynesian resurgence
In 2008 and 2009, there was a worldwide resurgence of interest in Keynesian economics among prominent economists and policy makers. This included discussions and implementation of economic policies in accordance with the recommendations made by John Maynard Keynes in response to the Great Depression— most especially fiscal stimulus and expansionary monetary policy.From the end of the Great Depression until the early 1970s, Keynesian economics provided the main inspiration for economic policy makers in Western industrialized countries. The influence of Keynes's theories waned in the 1970s, due to stagflation and critiques from Milton Friedman, Robert Lucas, Jr., Friedrich Hayek and other economists who were less optimistic about the ability of interventionist government policy to positively regulate the economy. From the early 1980s to 2008, the normative consensus among economists was that attempts at fiscal stimulus would be ineffective even in a recession, and such policies were only occasionally employed by the governments of advanced nations.In 2008, a rapid shift of opinion took place among many prominent economists in favour of Keynesian stimulus, and, from October onward, policy makers began announcing major stimulus packages, in hopes of heading off the possibility of a global depression. By early 2009 there was widespread acceptance among the world's economic policy makers about the need for fiscal stimulus. Yet by late 2009 the consensus among economists began to break down, and in 2010 with a depression averted but unemployment in many countries still high, policy makers generally decided against further fiscal stimulus. With the end of the brief consensus for Keynesian policies, but with the neoliberal policies that characterised the Washington Consensus era still viewed by many as discredited, several commentators have predicted that the Macroeconomic domain will see a return to ideological struggles.