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Presentazione della trad.it. di J.A. Schumpeter, Sozialistische Moeglinchkeiten von heute
No full text
The current European debate on fiscal policy: Too much and too little
Full text linkIn the last two weeks the European Central Bank (ECB) decided to launch new LTRO and T-LTRO programs to ensure liquidity to the banking sector as well as to small- and medium-sized firms (March 12, 2020) and to temporarily strengthen its ‘quantitative easing’ policy (March 18, 2020), which is centered on the purchases of government bonds and of a large set of private financial assets (including commercial papers). Moreover, the Single Supervisory Mechanism improved the positive impact of the ECB’s initiatives by temporarily weakening the capital requirements and the assessment of the non-performing exposures of the European banking sector. Finally, the European Commission (EC) decided to suspend the European coordination mechanism of the national fiscal policies, that is, the Stability and Growth Pact (SGP). This last step was considered crucial, since it is commonly agreed that even a generous unconventional monetary policy cannot face the short- and medium-term economic impact of the current pandemic shock. The T-LTRO and the ‘quantitative easing’ may, at most, provide liquidity to different economic activities and flatten the structure of interest rates; they cannot absorb the ‘real’ shock on the supply side and transfer income to temporarily unemployed workers and to households. The latter are duties that pertain to fiscal policy
A Schumpeterian Analysis of the Credit Market
No full textSchumpeter
shows
that
bank
credit
acts
as
money-‐capital
and,
therefore,
constitutes
the
necessary
premise
for
the
realization
of
the
innovative
processes
planned
by
entrepreneurs.
This
makes
it
important
to
specify
the
debt
contracts
between
each
bank
and
entrepreneurs
during
the
prosperity
phase
of
Schumpeter’s
cyclical
development.
The
present
paper
aims
to
point
out
the
achievements
and
the
limits
of
Schumpeter’s
monetary
theory
with
respect
to
this
point,
that
is
the
debt
contract
design.
On
the
side
of
the
limits,
I
maintain
that
Schumpeter’s
approach,
although
representing
one
of
the
most
stimulating
contributions
in
the
history
of
economic
analysis,
ask
for
refinements
as
regard
to
the
objective-‐function
of
the
individual
banks,
the
determination
of
the
interest
rates,
and
the
usableness
of
the
credit
demand
and
supply
curves.
Schumpeter’s
posthumous
treatise
on
money
provides
stimulating
insights
for
the
definition
of
these
refinements.Schumpeter
shows
that
bank
credit
acts
as
money-‐capital
and,
therefore,
constitutes
the
necessary
premise
for
the
realization
of
the
innovative
processes
planned
by
entrepreneurs.
This
makes
it
important
to
specify
the
debt
contracts
between
each
bank
and
entrepreneurs
during
the
prosperity
phase
of
Schumpeter’s
cyclical
development.
The
present
paper
aims
to
point
out
the
achievements
and
the
limits
of
Schumpeter’s
monetary
theory
with
respect
to
this
point,
that
is
the
debt
contract
design.
On
the
side
of
the
limits,
I
maintain
that
Schumpeter’s
approach,
although
representing
one
of
the
most
stimulating
contributions
in
the
history
of
economic
analysis,
ask
for
refinements
as
regard
to
the
objective-‐function
of
the
individual
banks,
the
determination
of
the
interest
rates,
and
the
usableness
of
the
credit
demand
and
supply
curves.
Schumpeter’s
posthumous
treatise
on
money
provides
stimulating
insights
for
the
definition
of
these
refinements.Refereed Working Papers / of international relevanc
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