scholarly journals News Discussion Project

2009 ◽  
Vol 1 (2) ◽  
pp. 139-145
Author(s):  
John Zagar
Keyword(s):  
United States ◽  
Interest Rates ◽  
The United States ◽  
Us Economy ◽  
Nation States ◽  
Current Economic Crisis ◽  
Current Economic Situation ◽  
Low Interest Rates ◽  
Recent Financial Crisis ◽  
Unites States

The Edmonton Sun newspaper recently carried an interesting article entitled "Maybe U.S. needs yard sale" written by Eric Margolis. In Eric Margolis's article, he talks about the recent financial crisis devastating the Unites States of America's (US) economy, along with much of the other global economies as well (Margolis, 2008). The current economic situation has been blamed on the tendency of certain banks to lend out loans (at low interest rates) to individuals and corporations who do not have the funds to payback those loans. This mistake has occurred in nation-states such as the United States, and Iceland. However, Eric Margolis article is not about the causes of the current economic crisis per se, but rather on the irony of the whole situation facing the United States as a consequence of their belief in neo-liberalism and their treatment of other nation-states. However, first we will look at the specific article.

scholarly journals Low interest rates and executive risk-taking incentives: Evidence from the United States

2020 ◽  
pp. 234094442092771
Author(s):  
Paula Castro ◽  
Maria T Tascon ◽  
Francisco J Castaño ◽  
Borja Amor-Tapia
Keyword(s):  
United States ◽  
Interest Rates ◽  
Risk Taking ◽  
The United States ◽  
Jel Classification ◽  
Short Term ◽  
Monetary Policies ◽  
Stock Return Volatility ◽  
Low Interest Rates ◽  
Institutional Shareholders

This article contributes to the literature by indicating how certain monetary policies impact the compensation incentives of US managers to adopt riskier business policies. Specifically, based on the agency problems between shareholders and managers and between shareholders and creditors, a research framework is developed to identify the influence of low interest rates on managers’ risk-taking incentives proxied by the sensitivity of executive compensation to stock return volatility (Vega). We examine 1,293 firms in the United States between 2000 and 2016, and the results indicate that low interest rates increase the managers’ short-term risk-taking incentives and that those incentives contribute to the risk effectively taken by the firm. Our results are robust to the use of alternative monetary proxies and to the presence of passive versus active institutional shareholders. JEL CLASSIFICATION E41; E43; E51; M12; M52

scholarly journals The Political Economy of the Budget Surplus in the United States

2000 ◽  
Vol 14 (3) ◽  
pp. 3-20 ◽  
Author(s):  
Alberto Alesina
Keyword(s):  
United States ◽  
Interest Rates ◽  
Budget Deficit ◽  
The United States ◽  
Defense Spending ◽  
The Political ◽  
Budget Balance ◽  
Political Forces ◽  
Low Interest Rates ◽  
The U.S

Current surpluses in the U.S. have been achieved by a combination of a strong economy, low interest rates, and sharp cuts in defense spending. These surpluses follow a period (the 1980s) of rather exceptional budget deficit. This paper investigates the origin, size, and expected future patterns of the U.S. budget balance. It discusses how different political forces may generate alternative fiscal scenarios for the U.S. in the next decade.

scholarly journals Expansion for Who, Markets or The Poor?

2014 ◽  
Vol 3 (4) ◽  
pp. 59
Author(s):  
Selcuk KENDIRLI ◽  
Sedat KUSGOZOGLU ◽  
M. Sakir BASARAN
Keyword(s):  
United States ◽  
Interest Rates ◽  
Positive Impact ◽  
International Comparisons ◽  
Financial Sector ◽  
The United States ◽  
Monetary Policies ◽  
Us Economy ◽  
The Poor ◽  
The Us

In this study we examine the impacts of expansionary monetary policies executed by the Federal Reserve on poverty in the United States of America. It has been discussed in various studies that the Fed’s expansionary monetary policies create a less positive impact on economy as a whole than financial sector. In this study, the expansionary effects of expansionary policies on the poor living in America will be discussed. The main thesis of the study is that the poor living in the United States benefited less from expansionary monetary policies than either financial sector or the US economy as a whole. When discussing the thesis of the study both employed and unemployed poor will be discussed. Therefore, it will be questioned that the decrease in the unemployment rate is the indicator of the fight against poverty.Indicators such as indices and interest rates in the financial markets, and indicators such as growth rates and unemployment rates in the overall economy are regarded as essential indicators but as for poverty it’s hard to find such regarded indicators. Unfortunately, there are not too many statistics about the poor living in the United States in the reports of the international organizations. Thus the main trouble of the study is that international comparisons are almost impossible. Therefore, various indicators produced by the U.S. government agencies of various indicators will be used in this study.

scholarly journals Economic Déjà vu

2017 ◽  
Vol 11 (1) ◽  
pp. 14-19
Author(s):  
Andrew Johnson
Keyword(s):  
United States ◽  
Monetary Policy ◽  
Interest Rates ◽  
Federal Reserve ◽  
Current System ◽  
The United States ◽  
Low Interest Rates ◽  
Near Future ◽  
American Economy ◽  
The U.S

The recent recession that swept through this and many countries worldwide had many causes, one of which was low interest rates in the United States. Loose monetary policy pursued by former Chairman of the Federal Reserve Alan Greenspan was a major component of the housing crash and following recession. Furthermore, the Fed’s current monetary policy is extremely similar to policy pursued before the 2008 recession. The current system of monetary policy implemented in the U.S., necessitating that credit and debt expand forever, is a dangerous and potentially disastrous policy to be pursuing. Unless a change takes place, the American economy could experience another — and possibly worse — recession in the near future. 

Iraq's Chemical Weapons Legacy: What Others Might Learn from Saddam

2005 ◽  
Vol 59 (2) ◽  
pp. 187-208
Author(s):  
Richard L. Russell
Keyword(s):  
United States ◽  
Nuclear Weapons ◽  
Nuclear Weapon ◽  
The United States ◽  
Chemical Weapons ◽  
Nation States

Iraq's experience with chemical weapons provides ample lessons for nation-states looking to redress their conventional military shortcomings. Nation-states are likely to learn from Saddam that chemical weapons are useful for waging war against nation-states ill-prepared to fight on a chemical battlefield as well as against internal insurgents and rebellious civilians. Most significantly, nation-states studying Iraq's experience are likely to conclude that chemical weapons are not a “poor man's nuclear weapon” and that only nuclear weapons can deter potential adversaries including the United States.

Remaking Retirement

2020 ◽  
Keyword(s):  
Interest Rates ◽  
Older Workers ◽  
Older Persons ◽  
The United States ◽  
Older Population ◽  
The Past ◽  
Cost Of Education ◽  
The World ◽  
Low Interest Rates ◽  
Key Aspects

Around the world, people nearing and entering retirement are holding ever-greater levels of debt than in the past. This is not a benign situation, as many pre-retirees and retirees are stressed about their indebtedness. Moreover, this growth in debt among the older population may render retirees vulnerable to financial shocks, medical care bills, and changes in interest rates. Contributors to this volume explore key aspects of the rise in debt across older cohorts, drill down into the types of debt and reasons for debt incurred by the older population, and review policies to remedy some of the financial problems facing older persons, in the United States and elsewhere. The authors explore which groups are most affected by debt, and they also identify the factors causing this important increase in leverage at older ages. It is clear that the economic and market environments are influential when it comes to saving and debt. Access to easy borrowing, low interest rates, and the rising cost of education have had important impacts on how much people borrow, and how much debt they carry at older ages. In this environment, the capacity to manage debt is ever more important as older workers lack the opportunity to recover for mistakes.

Rethinking U.S. National Security after Covid19

2020 ◽  
Vol 26 (3) ◽  
Author(s):  
Linda J. Bilmes
Keyword(s):  
Climate Change ◽  
United States ◽  
National Security ◽  
The United States ◽  
Emerging Diseases ◽  
Defense Spending ◽  
Federal Spending ◽  
Us Economy ◽  
The Us ◽  
The Military

AbstractThe United States has traditionally defined national security in the context of military threats and addressed them through military spending. This article considers whether the United States will rethink this mindset following the disruption of the Covid19 pandemic, during which a non-military actor has inflicted widespread harm. The author argues that the US will not redefine national security explicitly due to the importance of the military in the US economy and the bipartisan trend toward growing the military budget since 2001. However, the pandemic has opened the floodgates with respect to federal spending. This shift will enable the next administration to allocate greater resources to non-military threats such as climate change and emerging diseases, even as it continues to increase defense spending to address traditionally defined military threats such as hypersonics and cyberterrorism.

India and Vietnam in the Indo-Pacific

2021 ◽  
pp. 097492842110049
Author(s):  
Sanjay Pulipaka ◽  
Libni Garg
Keyword(s):  
United States ◽  
Balance Of Power ◽  
The United States ◽  
International Order ◽  
Territorial Aggression ◽  
Nation States ◽  
Power Shift ◽  
Security Challenges ◽  
Common Position ◽  
Foreign Policy Strategies

The international order today is characterised by power shift and increasing multipolarity. Countries such as India and Vietnam are working to consolidate the evolving multipolarity in the Indo-Pacific. The article maps the convergences in the Indian and Vietnamese foreign policy strategies and in their approaches to the Indo-Pacific. Both countries confront similar security challenges, such as creeping territorial aggression. Further, India and Vietnam are collaborating with the United States and Japan to maintain a favourable balance of power in the Indo-Pacific. While Delhi and Hanoi agree on the need to reform the United Nations, there is still some distance to travel to find a common position on regional economic architectures. The India–Vietnam partnership demonstrates that nation-states will seek to define the structure of the international order and in this instance by increasing the intensity of multipolarity.

Inflation Inequality: Measurement, Causes, and Policy Implications

2021 ◽  
Vol 13 (1) ◽  
Author(s):  
Xavier Jaravel
Keyword(s):  
United States ◽  
Income Distribution ◽  
Interest Rates ◽  
Optimal Taxation ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
The United States ◽  
Policy Implications ◽  
Annual Review ◽  
Publication Date

Does inflation vary across the income distribution? This article reviews the growing literature on inflation inequality, describing recent advances and opportunities for further research in four areas. First, new price index theory facilitates the study of inflation inequality. Second, new data show that inflation rates decline with household income in the United States. Accurate measurement requires granular price and expenditure data because of aggregation bias. Third, new evidence quantifies the impacts of innovation and trade on inflation inequality. Contrary to common wisdom, empirical estimates show that the direction of innovation is a significant driver of inflation inequality in the United States, whereas trade has similar price effects across the income distribution. Fourth, inflation inequality and non-homotheticities have important policy implications. They transform cost-benefit analysis, optimal taxation, the effectiveness of stabilization policies, and our understanding of secular macroeconomic trends—including structural change, the decline in the labor share and interest rates, and labor market polarization. Expected final online publication date for the Annual Review of Economics, Volume 13 is August 2021. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.

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