By Jeffrey A. Frankel, Peter R. Orszag
An exam of U.S. financial coverage within the Nineties, by way of top coverage makers in addition to educational economists.
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This paintings establishes the distinctiveness of the Marxian class of Capital at the foundation of the unique texts via Marx. The learn has been ignored within the present literature. The wage-labor courting is proven to be important and adequate for the lifestyles of capital(ism). person possession is proven to be a specific type of capitalist deepest estate which could additionally take the shape of collective possession.
Ebook by way of Bartlett, Bruce
Extra resources for American Economic Policy in the 1990s
Sometimes an increase in supply or decrease in demand leads to a fall in the equilibrium real wage for a group of workers. If nominal wages can’t be cut, then the only way to cut real wages is to allow inﬂation to do the job. Without inﬂation, the real wage will be stuck above the equilibrium level, resulting in higher unemployment. For this reason, some economists argue that inﬂation ‘‘greases the wheels’’ of labor markets. Only a little inﬂation is needed: An inﬂation rate of 2 percent lets real wages fall by 2 percent per year, or 20 percent per decade, without cuts in nominal wages.
Third, the desire to integrate various points of view shows a lack of dogma and nimbleness of mind. Without doubt, these traits have served Greenspan well in his role as Fed chairman. They have made it easier to get along with both Republican and Democratic administrations and to forge a consensus among open-market committee members with their differing theoretical perspectives. They have also made it easier for him to respond to economic circumstances that are changing, unpredictable, and sometimes inexplicable even after the fact.
By this measure, inﬂation was lowest in the 1960s and 1990s. But there is an important difference between these two periods. In the 1960s, the highest inﬂation rate occurred at the end of the decade, representing the beginning of a problem that would persist into the 1970s. By contrast, in the 1990s, inﬂation peaked at the beginning of the decade and thereafter became tame. 32 percent. 2 Judging the Inﬂation Experience These comparisons of inﬂation over the past ﬁve decades bring up a classic question of economic theory: What costs does inﬂation impose on a society?