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For the last four decades, mainstream economists and policymakers have been wedded to fixed dogmas. Their blind belief in fiscal discipline and consolidation, and resulting refusal to consider more public spending even in an obvious downturn, now threatens the very stability of societies.... Project SyndicateOur Shrinking Economic Toolkits Jayati Ghosh | Professor of Economics at the Centre for Economic Studies and Planning, School of Social Sciences, at the Jawaharlal Nehru University, in New DelhiSee also at Project Syndicate With the German economy close to recession, European Central Bank President Mario Draghi has rightly urged eurozone governments to provide more fiscal stimulus. And acknowledging the interaction between fiscal and monetary policy would leave critics much less
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Mike Norman considers the following as important: economics profession
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For the last four decades, mainstream economists and policymakers have been wedded to fixed dogmas. Their blind belief in fiscal discipline and consolidation, and resulting refusal to consider more public spending even in an obvious downturn, now threatens the very stability of societies.... Project SyndicateOur Shrinking Economic Toolkits Jayati Ghosh | Professor of Economics at the Centre for Economic Studies and Planning, School of Social Sciences, at the Jawaharlal Nehru University, in New DelhiSee also at Project Syndicate With the German economy close to recession, European Central Bank President Mario Draghi has rightly urged eurozone governments to provide more fiscal stimulus. And acknowledging the interaction between fiscal and monetary policy would leave critics much less
Topics:
Mike Norman considers the following as important: economics profession
This could be interesting, too:
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For the last four decades, mainstream economists and policymakers have been wedded to fixed dogmas. Their blind belief in fiscal discipline and consolidation, and resulting refusal to consider more public spending even in an obvious downturn, now threatens the very stability of societies....
Our Shrinking Economic Toolkits
Jayati Ghosh | Professor of Economics at the Centre for Economic Studies and Planning, School of Social Sciences, at the Jawaharlal Nehru University, in New Delhi
See also at Project Syndicate
With the German economy close to recession, European Central Bank President Mario Draghi has rightly urged eurozone governments to provide more fiscal stimulus. And acknowledging the interaction between fiscal and monetary policy would leave critics much less room for ECB-bashing.Germany Versus the ECB
Hans-Helmut Kotz, a former member of the executive board of Deutsche Bundesbank, is Program Director of the SAFE Policy Center at Goethe University in Frankfurt and a resident fellow at the Center for European Studies at Harvard University
At a time of slowing global growth and ultra-low interest rates, major central banks continue to “push on the string” of further monetary easing. But what if the same old rules – or even the same old economic theories – no longer apply?No Game in Town?
In this Big Picture, Harvard’s Lawrence H. Summers and Anna Stansburyargue that central banks have exhausted their ability to control inflation and unemployment levels through traditional channels, and should admit as much. Roger E.A. Farmer of the University of Warwick agrees, and suggests that it is not just the traditional tools that are broken; it’s the entire underlying theory. Making matters worse, economists Ernest Liu, Atif Mian, and Amir Sufi show that today’s loose monetary policies are not just ineffective, but possibly even contractionary, and thus entirely counter-productive.