scholarly journals The Controversies of Modern Macroeconomic Theory in the Context of the Global Economic Crisis

2018 ◽  
Vol 7 (2) ◽  
pp. 49-72 ◽  
Author(s):  
Jovan Djuraskovic ◽  
Milivoje Radovic ◽  
Milena Radonjic Konatar
Keyword(s):  
Economic Policy ◽  
Interest Rates ◽  
Economic Crisis ◽  
Self Regulation ◽  
State Intervention ◽  
Limited Range ◽  
Fiscal Policies ◽  
Economic Policies ◽  
Macroeconomic Theory ◽  
Global Economic Crisis

Abstract The aim of this paper is to analyze controversies of modern macroeconomic theories in the period of the global economic crisis. Ideas, disagreement and similarities between the most important theories in relation to state intervention and anti-crisis economic policy are presented. The topical research has found a connection between the roots of the global economic crisis and the paradigm of new liberal theories. The crisis has confirmed that the idea of self-regulation in the private sector is untenable in practice. In times of crisis, the leading theoretical framework in economic policy is reexamined. Rules-based monetary and fiscal policies are replaced by discretionary decision-making. In the world economies affected by the crisis, anti-Keynesian cyclical measures of monetary and fiscal policies were implemented. A comprehensive and unequivocal reaffirmation of Keynesianism in anti-crisis policies has confirmed the assumption of the circularity of economic theories. Central banks quickly reduced their key interest rates and increased their money supply. Fiscal authorities implemented expansive stimulus programs. When creating a new macroeconomic paradigm, market imperfection must be taken into account as well as a limited range of government economic policies.

The Legacy of Economic Recession in Terms of Over-Indebtedness: A Framework and Review of the Evidence

2020 ◽  
Vol 20 (1) ◽  
pp. 111-124
Author(s):  
Heikki Hiilamo
Keyword(s):  
Interest Rates ◽  
Economic Crisis ◽  
Debt Crisis ◽  
Housing Price ◽  
Economic Recession ◽  
Oecd Countries ◽  
Mortgage Lending ◽  
Global Economic Crisis ◽  
Run Up ◽  
The Uk

With the expansion of credit, low interest rates and overly optimistic expectations about future economic and housing price developments, mortgage lending soared in most OECD countries in the run-up to the 2008 global economic crisis. The crisis revealed the hidden epidemic of over-indebtedness, which continues to overshadow the lives of millions in rich countries. In the wake of the global economic crisis, the household debt crisis led to worsening economic conditions and put pressure on government finances, which caused further income shocks in the form of austerity measures such as social welfare cuts and higher taxes. This article is based on a scoping review aimed at summarising and reflecting on the available literature. It analyses the effects of over-indebtedness on individuals and societies across six OECD countries: Finland, Germany, the Netherlands, Norway, the UK and the US.

Delhi’s key think tank will urge state intervention

2017 ◽  
Keyword(s):  
Economic Policy ◽  
Interest Rates ◽  
State Intervention ◽  
Think Tank ◽  
Fiscal Stimulus ◽  
Content Type ◽  
Reserve Bank ◽  
Key Policy ◽  
Reserve Bank Of India ◽  
Stimulus Package

Subject Economic policy of the Indian government's key policy think tank. Significance The resignation last month of Arvind Panagariya as vice chairman of the NITI (National Institution for Transforming India) Aayog, and his replacement by Rajiv Kumar, signals a shift in the direction of Prime Minister Narendra Modi’s economic policy. Panagariya is a strong advocate of globalisation and ‘liberal’ economic reform. Kumar has spent most of his career in India and supports a greater role for the state in the economy. Impacts Delhi will soon announce a new fiscal stimulus package. The Reserve Bank of India (RBI) will come under increasing pressure to lower interest rates further. The Swadeshi Jagran Manch lobby group, which promotes the economic ideals of Hindu nationalism, may become more influential.

How economics frames political debates: macroeconomic forecasting in the French planning commissions

2019 ◽  
Author(s):  
Thomas Angeletti
Keyword(s):  
Economic Policy ◽  
State Intervention ◽  
Central Component ◽  
Economic Policies ◽  
Macroeconomic Forecasting ◽  
French Economy ◽  
Political Debates ◽  
Planning Processes ◽  
Depth Interviews

Abstract This article analyzes how economics can frame political debates using economic policy devices. It examines the FIFI macroeconomic model’s introduction into the French planning processes of the mid-1960s and argues that economists perform two operations, selection and qualification, which play a key role in structuring political debates on the French economy’s future. Building on archives and in-depth interviews, I show how the FIFI model was a central component of the Sixth Plan (1971–1975): it was designed to produce simulations of state intervention in the French economy and organize planning commissions debates. Studying the struggles and controversies surrounding this model and the economic policies promoted by it, the article ultimately shows how certain political options are made publicly available while others are discarded.

Economy and Policy in 2011: Global Crisis and Search for a New Model of Growth

2012 ◽  
pp. 4-26 ◽  
Author(s):  
V. Mau
Keyword(s):  
Economic Policy ◽  
Economic Development ◽  
Economic Crisis ◽  
Supply Side ◽  
Russian Society ◽  
New Model ◽  
Russian Economy ◽  
Social And Economic Development ◽  
Global Economic Crisis ◽  
Two Factors

The article reveals two factors which determined social and economic development of Russia in 2011: future elections and the global economic crisis. Relative sustainability of the Russian economy is noted. Still, macroeconomic stability remains fragile. Principal features of the global economic crisis are considered: its structural and systemic character. The specifics of Russian economic policy is analyzed. A new model of growth is proposed that is based on supply-side economics, its key elements are studied. Recent political changes in the Russian society are analyzed as well as their influence on economic dynamics. The necessity of complex modernization in Russia is stressed.

scholarly journals An Analysis of the Effects of the Economic Policy in Serbia by the Mundell-Fleming Model

2015 ◽  
Vol 53 (1) ◽  
pp. 51-62
Author(s):  
Zoran Grubišić ◽  
Sandra Kamenković
Keyword(s):  
Economic Policy ◽  
Fiscal Policy ◽  
Economic Crisis ◽  
Transition Process ◽  
Limiting Factors ◽  
Starting Position ◽  
Global Economic Crisis ◽  
Policy Measures ◽  
Monetary And Fiscal Policy ◽  
Selection Of

AbstractThe global economic crisis has affected the whole world, including Serbia. Countries with different degrees of development reacted with different measures of economic policy, both monetary as well as fiscal. Economic authorities in Serbia have encountered certain limiting factors in the selection of measures, first of all taking into account the unfinished transition process. This paper will examine whether the applied monetary and fiscal policy in Serbia is adequate according to the position which Serbia occupies by the Mundell-Fleming model, as well as to identify the starting position for future economic policy measures.

scholarly journals Les avatars des économies de marché

2005 ◽  
Vol 12 (4) ◽  
pp. 717-732 ◽  
Author(s):  
André Joyal
Keyword(s):  
Economic Crisis ◽  
Structural Changes ◽  
State Intervention ◽  
Economic Policies ◽  
Related Factors ◽  
Economic Problems ◽  
Considerable Debate ◽  
Impact Of Technology ◽  
The Impact ◽  
New Situation

The difficulties experienced by the Western economies since the middle seventie have given rise to considerable debate among economists. Some, referring to structural changes in the way the economy functions, have no hesitation in speaking of an economic crisis, while others, less pessimistic, consider that the present economic problems are due to the concordance of particular circumstances. The latter, evidently, belong to the dominant current of thought. Within this group we find some old ideas being put forward once more, challenging the various means of State intervention to regulate the economy. The relevance of treating the present situation as one of economic crisis is dealt with here in the light of four inter-related factors : the fall in labor productivity, the slowdown of the impact of technology, fordism, and the profitability of capital. A reconsideration of traditional economic policies brings out the need to accept the requirements of slower economic growth. Many persons have already adopted their consumer behavior to this new situation.

Populism and Economic Policy in Brazil

1991 ◽  
Vol 33 (2) ◽  
pp. 1-22 ◽  
Author(s):  
Luiz Carlos Bresser Pereira
Keyword(s):  
Economic Policy ◽  
Civil Society ◽  
Economic Crisis ◽  
National Interest ◽  
Economic Policies ◽  
Middle Income ◽  
Business Elites ◽  
Underdeveloped Countries ◽  
Modern Capitalism ◽  
The Military

Political or ideological obstacles have proved of paramount importance in Brazil's ability to adopt sound, consistent economic policies — the kind of policies the country needs if it is to overcome economic crisis and consolidate modern capitalism and democracy. Brazil's recent democratization was based on solid economic and social reality, representing the victory of civil society rather than a gift from the military regime. Nevertheless, it failed to tackle some of the basic ideologies and political practices which are typical of middle-income, industrialized, yet underdeveloped countries like Brazil: such as economic populism, developmentalism, anachronistic nationalist beliefs, political clientelism, unrealistic worker demands, conservatism, the orthodoxy of neoliberal monetarism, and the inability of short-sighted business elites to define the national interest.

scholarly journals Expansionary or restrictive policies in the Eurozone? Dominating trends in the first two decades

2021 ◽  
Vol 71 (3) ◽  
pp. 405-430
Author(s):  
Joanna Stawska ◽  
Paulo Jorge Reis Mourao
Keyword(s):  
Economic Policy ◽  
Interest Rates ◽  
Euro Area ◽  
Structural Breaks ◽  
Fiscal Policies ◽  
Short Term ◽  
Monetary Policies ◽  
Switching Regimes ◽  
Monetary And Fiscal Policy

Abstract Our aim is to identify periods of restrictive versus expansionary economic policy in the euro area in the last two decades. We firstly conducted the study for identifying the dominant trend in fiscal policies and then in monetary policies. We studied several fiscal outputs, focusing on the cyclical adjusted primary balance. We also analysed the European long-term and short-term interest rates. The study was conducted for several windows, namely for 3-, 4- and 5-year periods. Additional procedures were conducted for robustness checks, namely the study of structural breaks in the analysed time series as well as a study of them recurring to Markov-Switching Regimes models. For most of the analysed periods and subperiods of the series, we concluded for the presence of expansionary policies either in the fiscal or in monetary European domains. Finally, the results and the analysis of dependencies in the euro area economy favour the evidence that economic authorities in the euro area have sought to coordinate monetary and fiscal policy to stabilise the economy.

scholarly journals Assessment of the Central and Eastern Europe Economies in the Years 2007-2010 Based on the Model of the Macroeconomic Stabilization Pentagon

Equilibrium ◽  
2013 ◽  
Vol 8 (4) ◽  
pp. 49-64 ◽  
Author(s):  
Dorota Żuchowska
Keyword(s):  
Economic Policy ◽  
Financial Crisis ◽  
Eastern Europe ◽  
Economic Crisis ◽  
Central And Eastern Europe ◽  
Economic Condition ◽  
Macroeconomic Stabilization ◽  
Global Economic Crisis ◽  
Macroeconomic Indicators ◽  
Insight Into

The model of the macroeconomic stabilisation pentagon allows for a quick insight into the most important macroeconomic indicators of an economy in question. On the basis of this concept - comparing pentagrams for particular years - changes of the economic condition of countries can be examined. Moreover, the analysis of each of the adopted criteria allows for the evaluation of achievement of particular goals by a country in terms of its economic policy. The aim of this article is to describe the condition of Central and Eastern Europe countries in the years 2007-2010. The economies analysed were compared at two levels. The first level concerned the macroeconomic situation of all economies in particular years just before and during the global economic crisis. At the second level, the changes in the analysed indicators in particular economies of Central and Eastern Europe were compared. The results of the analysis shall contribute to the formulation of conclusions concerning the influence of the financial crisis upon the macroeconomic situation of the CEE countries.

Adam Smith und die Bankenregulierung Ein Widerspruch zu einer sonst liberalen Wirtschaftspolitik?

2014 ◽  
Vol 63 (3) ◽  
Author(s):  
Christian E. W. Kremser
Keyword(s):  
Economic Policy ◽  
Interest Rates ◽  
Financial Market ◽  
Adam Smith ◽  
Banking Regulation ◽  
Economic Policies ◽  
Paper Money ◽  
Laissez Faire ◽  
Do So

AbstractProponents of liberal economic policies in the financial market often refer to the moral and economic authority of Adam Smith, the founder of economics as a science, to add weight to their recommendations. They think, they can do so, because Adam Smith is in these circles considered a prominent representative of an economically unbridled laissez-faire liberalism. The fact that Adam Smith also advocated several measures of economic policies for the regulation of banking, like a limit for interest rates of 5 %, the prohibition of paper money under a nominal value of £ 5 and the use of option clauses on banknotes, is little known to the recipients. For this reason, this paper wants to give an answer to the question, whether Adam Smith’s advocacy of banking regulation is a contradiction to his otherwise liberal economic policy or not.

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