Download or read book A Fiscal Stimulus and Jobless Recovery written by Mr.Cristiano Cantore and published by International Monetary Fund. This book was released on 2013-01-18 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: We analyse the effects of a government spending expansion in a DSGE model with Mortensen-Pissarides labour market frictions, deep habits in private and public consumption, investment adjustment costs, a constant-elasticity-of-substitution (CES) production function, and adjustments in employment both at the intensive as well as the extensive margin. The combination of deep habits and CES technology is crucial. The presence of deep habits magnifies the responses of macroeconomic variables to a fiscal stimulus, while an elasticity of substitution between capital and labour in the range of available estimates allows the model to produce a scenario compatible with the observed jobless recovery.

Download or read book Just Around The Corner written by Stanley Aronowitz and published by Temple University Press. This book was released on 2005-03-14 with total page 176 pages. Available in PDF, EPUB and Kindle. Book excerpt: Americans have always believed that economic growth leads to job growth. In this groundbreaking analysis, Stanley Aronowitz argues that this is no longer true. Just Around the Corner examines the state of the American economy as planned by Democrats and Republicans over the last thirty years. Aronowitz finds that economic growth has become "delinked" from job creation, and that unemployment and underemployment are a permanent condition of our economy. He traces the historical roots of this state of affairs and sees under the surface of booms and busts a continuum of economic austerity that creates financial windfalls for the rich at the expense of most Americans. Aronowitz also explores the cultural and political processes by which we have come to describe and accept economics in the United States. He concludes by presenting a concrete plan of action that would guarantee employment and living wages for all Americans. With both measured analysis and persuasive reasoning, Just Around the Corner provides an indispensable guide to our current economic predicament and a bold challenge to economists and policymakers.

Download or read book Prospects for Employment Growth written by United States. Congress. House. Committee on Financial Services and published by . This book was released on 2010 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Generating Jobs and Growth written by and published by . This book was released on 2002 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The U.S. economy clearly needs government action to stimulate job creation in what has been, so far, a "jobless recovery." Without action, the modest economic growth projected for next year will be too little to stop unemployment from rising to 6.0% or higher and staying there throughout 2003. The challenge is to devise a stimulus plan that is both effective and avoids undermining the nation's long-term fiscal health. Any stimulus designed to increase productive capacity--the supply side of the economy--will be ineffective because at this time there is already substantial unused capacity. And any stimulus involving permanent spending increases or tax cuts will adversely affect the government's future fiscal position. Thus, a stimulus package that is both effective and fiscally prudent must consist of new but temporary spending, coupled with an immediate but temporary tax cut in the form of a wage bonus. Such measures will boost demand for goods and services, generating more customers and leading businesses to invest and increase employment. The year 2000 showed that U.S. unemployment can be pushed down to 4.0% without causing inflation. The goal now should be to accelerate growth, moving the economy back to a 4.0% unemployment rate and the broad-based prosperity that would follow.

Download or read book The Impact of COVID 19 Fiscal Stimulus on the U S Economic Recovery written by Terrie Walmsley and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We estimate the impact of fiscal stimulus measures enacted in response to COVID-19 on U.S. GDP, investment and exports. We apply a dynamic computable general equilibrium model adept at estimating total direct and indirect effects and their time-path. Initial stimulus bills, including the CARES Act, reduced the potential decline in GDP resulting from the pandemic by 7.1 percentage points in early 2020. Later rounds were not as beneficial, largely due to crowding out of investment. Unemployment benefits provided a larger increase in GDP than direct and indirect payments to individuals, and corporate tax relief had a positive impact on growth.

Download or read book The Jobless Recovery written by Robert J. Gordon and published by . This book was released on 2004 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: By far the most widely noted and puzzling aspect of the current economic recovery is its failure to create jobs. While payroll employment in seven previous recessions increased a full 7 percent in the first twenty-three months following the NBER business cycle trough, such employment increased by only 0.8 percent - just over one-tenth as much - from March 1991 to March 1993. Part of the explanation of negligible job growth lies in the recovery's relatively slow pace of output growth, which has been little more than one-third the usual postwar pace. The remaining part of the job puzzle stems from the ebullient performance of productivity - that is, output per hour in the nonfarm business sector - which registered a growth rate of 3.2 percent in the four quarters ending in 1992:4, the most rapid rate recorded in any similar period for more than sixteen years. The share of output growth accounted for by productivity growth in the current recovery is 112 percent, far exceeding the 47 percent average of the previous postwar recoveries at the same stage. For any given pace of output growth, more rapid productivity growth by definition implies less rapid growth in labor input. This suggests that the recent revival in productivity growth may be the key to understanding the puzzling absence of job creation in the recovery. Productivity-led growth is nothing but good news. In the two decades ending in mid-1992, the nonfarm business sector registered an average annual productivity growth rate of less than 1 percent: 0.85 percent, to be exact. Imagine the benefits to the economy if the recent good news on productivity were to imply, as some have suggested, a doubling in productivity growth to a rate of 1.7 percent over the next decade. For any given path of labor input, nonfarm private business output in the year 2003 would be almost 9 percent larger - some $450 billion more - allowing that much more private and/or public spending. Productivity-led growth does not imply a jobless recovery in anything but the shortest run. Instead, any beneficial shock to productivity growth sets the stage for lower inflation that enables policy makers to stimulate output growth sufficiently to create the same number of jobs that would have occurred in the absence of the shock. If the jobless character of the 1991-93 recovery indeed has been caused by a benign productivity shock, then its jobless character implies that there has been too little stimulus to output growth, not that a productivity surge must necessarily rob the nation of jobs.

Download or read book The Budget and Economic Outlook written by and published by . This book was released on 2008 with total page 196 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Hysteresis and Business Cycles written by Ms.Valerie Cerra and published by International Monetary Fund. This book was released on 2020-05-29 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: Traditionally, economic growth and business cycles have been treated independently. However, the dependence of GDP levels on its history of shocks, what economists refer to as “hysteresis,” argues for unifying the analysis of growth and cycles. In this paper, we review the recent empirical and theoretical literature that motivate this paradigm shift. The renewed interest in hysteresis has been sparked by the persistence of the Global Financial Crisis and fears of a slow recovery from the Covid-19 crisis. The findings of the recent literature have far-reaching conceptual and policy implications. In recessions, monetary and fiscal policies need to be more active to avoid the permanent scars of a downturn. And in good times, running a high-pressure economy could have permanent positive effects.

Download or read book Animal Spirits written by George A. Akerlof and published by Princeton University Press. This book was released on 2010-02-01 with total page 261 pages. Available in PDF, EPUB and Kindle. Book excerpt: From acclaimed economists George Akerlof and Robert Shiller, the case for why government is needed to restore confidence in the economy The global financial crisis has made it painfully clear that powerful psychological forces are imperiling the wealth of nations today. From blind faith in ever-rising housing prices to plummeting confidence in capital markets, "animal spirits" are driving financial events worldwide. In this book, acclaimed economists George Akerlof and Robert Shiller challenge the economic wisdom that got us into this mess, and put forward a bold new vision that will transform economics and restore prosperity. Akerlof and Shiller reassert the necessity of an active government role in economic policymaking by recovering the idea of animal spirits, a term John Maynard Keynes used to describe the gloom and despondence that led to the Great Depression and the changing psychology that accompanied recovery. Like Keynes, Akerlof and Shiller know that managing these animal spirits requires the steady hand of government—simply allowing markets to work won't do it. In rebuilding the case for a more robust, behaviorally informed Keynesianism, they detail the most pervasive effects of animal spirits in contemporary economic life—such as confidence, fear, bad faith, corruption, a concern for fairness, and the stories we tell ourselves about our economic fortunes—and show how Reaganomics, Thatcherism, and the rational expectations revolution failed to account for them. Animal Spirits offers a road map for reversing the financial misfortunes besetting us today. Read it and learn how leaders can channel animal spirits—the powerful forces of human psychology that are afoot in the world economy today. In a new preface, they describe why our economic troubles may linger for some time—unless we are prepared to take further, decisive action.

Download or read book Foreign Exchange Value of the Dollar written by and published by . This book was released on 1984 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Global Economic Prospects 2010 written by World Bank and published by World Bank Publications. This book was released on 2010-02-12 with total page 187 pages. Available in PDF, EPUB and Kindle. Book excerpt: “The crisis has deeply impacted virtually every economy in the world, and although growth has returned, much progress in the fight against poverty has been lost. More difficult international conditions in the years to come will mean that developing countries will have to place even more emphasis on improving domestic economic conditions to achieve the kind of growth that can durably eradicate poverty.� —Justin Yifu Lin, Chief Economist and Senior Vice President The World Bank 'Global Economic Prospects 2010: Crisis, Finance, and Growth' explores both the short- and medium-term impacts of the financial crisis on developing countries. Although global growth has resumed, the recovery is fragile, and unless business and consumer demand strengthen, the world economy could slow down again. Even if, as appears likely, a double-dip recession is avoided, the recovery is expected to be slow. High unemployment and widespread restructuring will continue to characterize the global economy for the next several years. Already, the crisis has provoked large-scale human suffering. Some 64 million more people around the world are expected to be living on less than a $1.25 per day by the end of 2010, and between 30,000 and 50,000 more infants may have died of malnutrition in 2009 in Sub-Saharan Africa, than would have been the case if the crisis had not occurred. Over the medium term, economic growth is expected to recover. But increased risk aversion, a necessary and desirable tightening of financial regulations in high-income countries, and measures to reduce the exposure of developing economies to external shocks are likely to make finance scarcer and more costly than it was during the boom period. As a result, just as the ample liquidity of the early 2000s prompted an investment boom and an acceleration in developing-country potential output, higher costs will likely yield a slowing in developing-country potential growth rates of between 0.2 and 0.7 percentage points, and as much as an 8 percent decline in potential output over the medium term. In the longer term, however, developing countries can more than offset the implications of more expensive international finance by reducing the cost of capital channeled through their domestic financial markets. For more information, please visit www.worldbank.org/gep2010. To access Prospects for the Global Economy, an online companion publication, please visit www.worldbank.org/globaloutlook.

Download or read book Why America Lost the War on Poverty And How to Win It written by Frank Stricker and published by UNC Press Books. This book was released on 2011-02-01 with total page 360 pages. Available in PDF, EPUB and Kindle. Book excerpt: In a provocative assessment of American poverty and policy from 1950 to the present, Frank Stricker examines an era that has seen serious discussion about the causes of poverty and unemployment. Analyzing the War on Poverty, theories of the culture of poverty and the underclass, the effects of Reaganomics, and the 1996 welfare reform, Stricker demonstrates that most antipoverty approaches are futile without the presence (or creation) of good jobs. Stricker notes that since the 1970s, U.S. poverty levels have remained at or above 11%, despite training programs and periods of economic growth. The creation of jobs has continued to lag behind the need for them. Stricker argues that a serious public debate is needed about the job situation; social programs must be redesigned, a national health care program must be developed, and economic inequality must be addressed. He urges all sides to be honest--if we don't want to eliminate poverty, then we should say so. But if we do want to reduce poverty significantly, he says, we must expand decent jobs and government income programs, redirecting national resources away from the rich and toward those with low incomes. Why America Lost the War on Poverty--And How to Win It is sure to prompt much-needed debate on how to move forward.

Download or read book Global Recession The Insights You Need from Harvard Business Review written by Harvard Business Review and published by Harvard Business Press. This book was released on 2021-03-30 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: Roar Out of the Covid-19 Recession You've weathered the shock, the lockdowns, and the slow crawl back. But with a new normal come new risks—and new opportunities. What must you and your business do now to come out of the downturn stronger and better positioned for the future? Global Recession: Insights You Need from Harvard Business Review will help you find possibilities amid the upheaval and reshape your business to seize advantage in the upswing. Business is changing. Will you adapt or be left behind? Get up to speed and deepen your understanding of the topics that are shaping your company's future with the Insights You Need from Harvard Business Review series. Featuring HBR's smartest thinking on fast-moving issues—blockchain, cybersecurity, AI, and more—each book provides the foundational introduction and practical case studies your organization needs to compete today and collects the best research, interviews, and analysis to get it ready for tomorrow. You can't afford to ignore how these issues will transform the landscape of business and society. The Insights You Need series will help you grasp these critical ideas—and prepare you and your company for the future.

Download or read book Back to Full Employment written by Robert Pollin and published by MIT Press. This book was released on 2012 with total page 206 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economist Robert Pollin argues that the United States needs to try to implement full employment and how it can help the economy.

Download or read book Fiscal Policy after the Financial Crisis written by Alberto Alesina and published by University of Chicago Press. This book was released on 2013-06-25 with total page 596 pages. Available in PDF, EPUB and Kindle. Book excerpt: The recent recession has brought fiscal policy back to the forefront, with economists and policy makers struggling to reach a consensus on highly political issues like tax rates and government spending. At the heart of the debate are fiscal multipliers, whose size and sensitivity determine the power of such policies to influence economic growth. Fiscal Policy after the Financial Crisis focuses on the effects of fiscal stimuli and increased government spending, with contributions that consider the measurement of the multiplier effect and its size. In the face of uncertainty over the sustainability of recent economic policies, further contributions to this volume discuss the merits of alternate means of debt reduction through decreased government spending or increased taxes. A final section examines how the short-term political forces driving fiscal policy might be balanced with aspects of the long-term planning governing monetary policy. A direct intervention in timely debates, Fiscal Policy after the Financial Crisis offers invaluable insights about various responses to the recent financial crisis.

Download or read book Leaning Against Windy Bank Lending written by Mr.Giovanni Melina and published by International Monetary Fund. This book was released on 2017-07-31 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using an estimated dynamic stochastic general equilibrium model with banking, this paper first provides evidence that monetary policy reacted to bank loan growth in the US during the Great Moderation. It then shows that the optimized simple interest-rate rule features no response to the growth of bank credit. However, the welfare loss associated to the empirical responsiveness is small. The sources of business cycle fluctuations are crucial in determining whether a “leaning-against-the-wind” policy is optimal or not. In fact, the predominant role of supply shocks in the model gives rise to a trade-off between inflation and financial stabilization.

Download or read book Fault Lines written by Raghuram G. Rajan and published by Princeton University Press. This book was released on 2011-08-08 with total page 283 pages. Available in PDF, EPUB and Kindle. Book excerpt: From an economist who warned of the global financial crisis, a new warning about the continuing peril to the world economy Raghuram Rajan was one of the few economists who warned of the global financial crisis before it hit. Now, as the world struggles to recover, it's tempting to blame what happened on just a few greedy bankers who took irrational risks and left the rest of us to foot the bill. In Fault Lines, Rajan argues that serious flaws in the economy are also to blame, and warns that a potentially more devastating crisis awaits us if they aren't fixed. Rajan shows how the individual choices that collectively brought about the economic meltdown—made by bankers, government officials, and ordinary homeowners—were rational responses to a flawed global financial order in which the incentives to take on risk are incredibly out of step with the dangers those risks pose. He traces the deepening fault lines in a world overly dependent on the indebted American consumer to power global economic growth and stave off global downturns. He exposes a system where America's growing inequality and thin social safety net create tremendous political pressure to encourage easy credit and keep job creation robust, no matter what the consequences to the economy's long-term health; and where the U.S. financial sector, with its skewed incentives, is the critical but unstable link between an overstimulated America and an underconsuming world. In Fault Lines, Rajan demonstrates how unequal access to education and health care in the United States puts us all in deeper financial peril, even as the economic choices of countries like Germany, Japan, and China place an undue burden on America to get its policies right. He outlines the hard choices we need to make to ensure a more stable world economy and restore lasting prosperity.