scholarly journals How Interest Causes Unemployment

ICR Journal ◽  
2013 ◽  
Vol 4 (2) ◽  
pp. 304-307
Author(s):  
Abdul Karim Abdullah (Leslie Terebessy)
Keyword(s):  
Economic Growth ◽  
Economic Theory ◽  
Great Depression ◽  
Government Spending ◽  
Economic Recession ◽  
The Great Depression

A number of nations are currently mired in an economic recession. Conventional economic theory seems unable to point to a way out. Many households, individuals, firms and even governments are trapped in sizable levels of debt. Keynes argued in favour of overcoming the Great Depression by raising government spending in order to stimulate economic growth. This was to be financed by borrowing. This solution worked then but is unlikely to work now, as many governments are already deeply in debt.  

WHY ECONOMIC GROWTH IS NEVER SUSTAINABLE

2011 ◽  
Vol 2 ◽  
Author(s):  
Ivars Brīvers
Keyword(s):  
Economic Growth ◽  
Economic Theory ◽  
Sustainable Development ◽  
Steady State ◽  
Great Depression ◽  
Costs And Benefits ◽  
Global Crisis ◽  
The Great Depression ◽  
The People ◽  
State Economy

The first decade of the XXI century clearly shows that the notion of the people concerning the values and goals in economy should be revised. As a result of global crisis economic theory may experience essential changes, as it was during the Great Depression in the XX century. The aim of the paper is to show the necessity of reconsidering the goals in economy. The hypothesis is that growth economy has become non-sustainable and it should be substituted by an economy of a different design – steady-state economy. The paper contains a review and analysis of various ideas about the problem, focusing mainly on the interpretation of the notion of sustainable development and the costs and benefits of economic growth; the way, how we measure things in economy and about the widespread illusions about the possibility of perpetual economic growth. The conclusion is that any growth, including economic growth is never sustainable.

To Raise the Golden Anchor? Financial Crises and Uncertainty During the Great Depression

1999 ◽  
Vol 59 (3) ◽  
pp. 624-658 ◽  
Author(s):  
J. Peter Ferderer ◽  
David A. Zalewski
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Great Depression ◽  
Interwar Period ◽  
Gold Standard ◽  
Financial Crises ◽  
Capital Flight ◽  
The Great Depression ◽  
Interest Rate Volatility

This study examines the interplay between financial crises, uncertainty, and economic growth during the interwar period. Comparing the experiences of ten countries, we provide evidence that reductions in the credibility of a country's commitment to the gold standard generated capital flight and higher interest rate volatility. This volatility, in turn, was inversely correlated with economic growth. These results suggest that financial crises helped propagate the Great Depression, in part, by increasing uncertainty.

Learning about Growth and Democracy

2020 ◽  
Vol 114 (4) ◽  
pp. 1195-1212
Author(s):  
SCOTT F. ABRAMSON ◽  
SERGIO MONTERO
Keyword(s):  
Economic Growth ◽  
Twentieth Century ◽  
Economic Development ◽  
Great Depression ◽  
The Great Depression ◽  
The World ◽  
Past Experiences

We develop and estimate a model of learning that accounts for the observed correlation between economic development and democracy and for the clustering of democratization events. In our model, countries’ own and neighbors’ past experiences shape elites’ beliefs about the effects of democracy on economic growth and their likelihood of retaining power. These beliefs influence the choice to transition into or out of democracy. We show that learning is crucial to explaining observed transitions since the mid-twentieth century. Moreover, our model predicts reversals to authoritarianism if the world experienced a growth shock the size of the Great Depression.

scholarly journals The Great Depression analogy

2010 ◽  
Vol 17 (2) ◽  
pp. 127-140 ◽  
Author(s):  
Michael Bordo ◽  
Harold James
Keyword(s):  
Economic Theory ◽  
Great Depression ◽  
Rapid Decline ◽  
Human History ◽  
Industrial Activity ◽  
The Great Depression ◽  
The World ◽  
Bank Of England ◽  
World Economic ◽  
Economic Outlook

In the discussion of our contemporary economic disease, the Great Depression analogy refuses to go away. Almost every policy-maker referred to conditions that had ‘not been seen since the Great Depression’, even before the failure of Lehman. Some even went further – the Deputy Governor of the Bank of England notably called the crisis the worst ‘financial crisis in human history’. In its April 2009 World Economic Outlook, the IMF looked explicitly at the analogy not only in the collapse of financial confidence, but also in the rapid decline of trade and industrial activity across the world. In general, history rather than economic theory seems to offer a guide in interpreting wildly surprising and inherently unpredictable events. Some observers, notably Paul Krugman, have concluded that a Dark Age of macroeconomics has set in.

scholarly journals Monetary Policy: From There to Here to Where?

2013 ◽  
pp. 1-6
Author(s):  
Mark Sniderman
Keyword(s):  
Economic Theory ◽  
Monetary Policy ◽  
Great Depression ◽  
Federal Reserve ◽  
Lessons Learned ◽  
The Past ◽  
The Great Depression ◽  
New Framework

Drawing from his long experience participating in the policymaking process at the Federal Reserve, chief policy officer Mark Sniderman shares his views on how the Federal Reserve's framework for conducting monetary policy has evolved over the past decade. He explains how changes in economic theory have helped shaped this new framework and how lessons learned from the Great Depression and Japan's recent struggle with deflation have contributed. This Commentary is based on a speech delivered at the Global Interdependence Conference, Tokyo, Japan, on December 4, 2012.

EUROPEAN SOCIAL ORDER IN THE FACE OF CHALLENGES OF GLOBAL CRISIS

2012 ◽  
Vol 164 (2) ◽  
pp. 144-156
Author(s):  
Jerzy BESTRY
Keyword(s):  
Great Depression ◽  
Economic Crisis ◽  
Social Order ◽  
Economic Recession ◽  
Traumatic Experiences ◽  
The Past ◽  
The Great Depression ◽  
Current Economic Crisis ◽  
The World ◽  
The Face

The world is on the eve of change. Current economic recession surprisingly resembles the ”Great Depression” of 1929. The time will show whether the global society has drawn conclusions from the traumatic experiences of the last century. Historia magistra vitae est. In this article, the author makes a prediction concerning European social order based on the analysis of present-day socio-economic events and the circumstances preceding both the current economic crisis and the past one.

scholarly journals National Governance of Public Health Responses in a Pandemic?

2020 ◽  
Vol 11 (2) ◽  
pp. 240-248
Author(s):  
Mary DOBBS
Keyword(s):  
Public Health ◽  
Great Depression ◽  
International Monetary Fund ◽  
Economic Recession ◽  
The Great Depression ◽  
The World ◽  
The Usa ◽  
The International Monetary Fund

The world is currently facing the worst pandemic in a century and we were caught unprepared. COVID-19 has proven highly contagious and with severe consequences that are still unfolding. As of 16 April 2020, there were over 2 million confirmed cases and over 136,000 related deaths reported worldwide.1 Over 1 million of those confirmed cases were in the preceding 14 days, with the USA accounting for nearly half of those. Furthermore, the International Monetary Fund (IMF) is now warning that the world is about to suffer the worst economic recession since the Great Depression in the 1920s.2

scholarly journals Analyzing the Global Risks for the Financial Crisis after the Great Depression Using Comparative Hybrid Hesitant Fuzzy Decision-Making Models: Policy Recommendations for Sustainable Economic Growth

2018 ◽  
Vol 10 (9) ◽  
pp. 3126 ◽  
Author(s):  
Hasan Dinçer ◽  
Serhat Yüksel ◽  
Seçil Şenel
Keyword(s):  
Economic Growth ◽  
Great Depression ◽  
Latin American ◽  
Debt Crisis ◽  
Fuzzy Topsis ◽  
Fuzzy Decision Making ◽  
Global Risk ◽  
Fuzzy Vikor ◽  
The Great Depression ◽  
Sustainable Economic Growth

The aim of this study is to analyze the effects of global risks on financial crises. For this purpose, five different outstanding crises after the Great Depression of 1929 are taken into the consideration. Additionally, four different dimensions are selected regarding global risk by considering the Global Risk Report. Moreover, the hesitant fuzzy DEMATEL, the hesitant fuzzy VIKOR, and the hesitant fuzzy TOPSIS methodologies are used to reach this objective. We concluded that, with respect to global risks, the industry-based dimension has the highest importance in comparison to other dimensions. In addition, we also identified that the 2010 European debt crisis and the 1982 Latin American debt crisis were the most influenced crises in terms of global risk. The main reason for this is that the macroeconomic problems such as high inflation and unemployment had negative impacts on the industries of these countries. Another important point is that the results of the hesitant fuzzy VIKOR and hesitant fuzzy TOPSIS models are quite different, but they are the most similar when the experts do not reach the consensus. This situation shows that this analysis is quite appropriate with respect to the hesitant approach. While considering these aspects, we recommended that countries should firstly focus on the solutions related to industry level problems in order to minimize the global risk. Owing to this issue, it can be more possible to reach sustainable economic growth in the world.

Real Business Cycle Views of the Great Depression and Recent Events: A Review of Timothy J. Kehoe and Edward C. Prescott's Great Depressions of the Twentieth Century

2008 ◽  
Vol 46 (3) ◽  
pp. 669-684 ◽  
Author(s):  
Peter Temin
Keyword(s):  
Economic Growth ◽  
Business Cycle ◽  
Great Depression ◽  
Real Business Cycle ◽  
Closed Economy ◽  
Tfp Growth ◽  
The Great Depression ◽  
Short Run ◽  
Definition Of ◽  
Almost All

This book collects essays, most of which were published earlier, into an advertisement for real business cycle (RBC) analysis. Half of the essays discuss the Great Depression; half discuss events of the 1980s and 1990s. They all use the general equilibrium model of economic growth to analyze short-run fluctuations in the rate of economic growth of various countries. I find that the use of closed economy models without frictions is not useful for the analysis of short-run variations in the rate of economic growth. Almost all of these essays end by claiming that variations in the rate of GDP growth were due to changes in the rate of total factor productivity (TFP) growth. They do not provide any explanation for fluctuations in the rate of TFP growth, leaving the reader no closer to understanding these periods of depression and slow growth. I discuss in turn the essays on the Great Depression, the essays on more recent fluctuations, and the definition of “great depressions” used in this volume.

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