419 research outputs found
Pro-Growth Alternatives for Monetary and Financial Policies in Sub-Saharan Africa
No full textPro-Growth Alternatives for Monetary and Financial Policies in Sub-Saharan Africa
Austerity is Not a Solution: Why the Deficit Hawks are Wrong
No full textWall Street hyper-speculation brought the global economy to its knees in 2008-09.� To prevent a 1930s-level Depression at that time, economic policymakers throughout the world enacted extraordinary measures.� These included large-scale fiscal stimulus programs, financed by major expansions in central government fiscal deficits.� In the U.S., the fiscal deficit reached 9.9 percent of GDP in 2009, and is projected at 10.3 percent of GDP in 2010.� But roughly 18 months after these measures were introduced, a new wave of opposition to large-scale fiscal deficits has emerged.�� This paper reviews the arguments developed by various leading deficit hawks.� In� fact, they are not advancing one main argument or even a unified set of positions, but rather four distinct claims:� 1)� Large fiscal deficits will cause high interest rates, large government debts, and inflation; 2) Even if the current deficits have not caused high interest rates and inflation, they are eroding business confidence; 3) The multiplier for fiscal stimulus policies is always close to zero and has been so with the current measures; and 4) Regardless of short-term considerations, we are courting disaster in the long run with structural deficits that the recession only worsened.� This paper argues that none of these deficit hawk positions stand up to scrutiny.� I also argue that through critiquing the four deficit-hawk positions, we can also bring greater clarity toward developing a workable recovery program.� This will include fiscal deficits that can stabilize state and local government budgets; maintain sufficient funds for unemployment insurance; and continue support for long-term investments in traditional infrastructure and clean energy.��� But such fiscal policies also need to combine with credit-market measures that are capable of ‘pulling on a string’—i.e. creating strong enough incentives for both lenders and borrowers to unlock credit markets.
The Relevance of Hyman Minsky
No full textWorking Paper 183The highly regarded economist Hyman Minsky died late last year. His work, however, has never been more relevant than it is today. Robert Pollin offers this summary of his contribution
Considerations on Interest Rate Exogeneity
No full textThe idea of an exogenous money supply—controlled entirely through centralbank interventions—was a fundamental tenet of monetarism and New Classical economics. Post Keynesians have developed an extensive literature arguing that the money supply is in fact endogenous—that market forces combine with central banks in establishing the money supply.But Post Keynesians disagree on a related question: to what extent are interest rates set exogenously by central banks? To address this issue, this paper presents evidence regarding the movement of market interest rates in U.S. financial markets relative to the Federal Reserve-controlled Federal Funds rate. Concluding that market interest rates are primarily set through market forces—i.e. are largely endogenous—the paper then discusses the primary source of interest rate endogeneity. This is the instability of deregulated financial markets, which leads market participants to make wide swings in their risk assessments over time. It follows that effective regulatory policies to stabilize markets and control interest rates directly will increase the degree of interest rate exogeneity. The paper concludes with proposals for establishing greater control over market interest rates.
Climate Crisis and the Global Green New Deal: The Political Economy of Saving the Planet
No full textDalam buku baru yang menarik ini, Noam Chomsky, intelektual publik terkemuka di dunia, dan Robert Pollin, seorang ekonom progresif terkenal, memetakan konsekuensi bencana dari perubahan iklim yang tidak terkendali—dan menyajikan cetak biru perubahan yang realistis: Green New Deal
Introduction
No full textPollin Jean-Paul, Marois William, Ferrandier Robert. Introduction. In: Revue économique, volume 43, n°2, 1992. pp. 197-202
Introduction
No full textPollin Jean-Paul, Marois William, Ferrandier Robert. Introduction. In: Revue économique, volume 43, n°2, 1992. pp. 197-202
Expanding Decent Employment in Kenya: The Role of Monetary Policy, Inflation Control, and the Exchange Rate
No full textThis IPC Country Study by Robert Pollin and James Heintz examines three policy areas related to monetary policies in Kenya: inflation dynamics and the relationship between inflation and long-run growth; monetary policy targets and instruments; and exchange rate dynamics and the country?s external balance. It concludes with five main policy recommendationsPoverty, Inflation Control, Exchange Rate
The Relevance of Hyman Minsky
No full textHyman Minsky, who died in 1996, was responsible for an analytical framework that he called the "financial instability hypothesis" or the "Wall Street paradigm." His analysis is perhaps even more relevant today than it was when Robert Pollin wrote this retrospective of his work in 1997. Minsky's paradigm led to one central result was is fundamentally at odds with the mainstream view, but is key to understanding our current crisis: Capitalist economies are inherently unstable, and disequilibrium and unemployment are their normal state of affairs. Minsky wrote, "The capitalist market mechanism is flawed in the sense that it does not lead to stable price-full employment equilibrium, and that the basis of the flaw resides in the financial system." His life work, reviewed here by Pollin, sheds light on ways we can redeem the capitalist marketplace to promote stability and equity.
Response to “Seven Myths about Green Jobs” and “Green Jobs Myths”
No full textIn this working paper, Robert Pollin responds to critics who purport to debunk “myths” about recent studies on the employment effects of investments in the clean energy economy. These papers are written as a response to what they term the “rapidly gaining popularity” of four studies that attempt to show the employment gains that can emerge from investments in building a clean energy economy in the United States, including Green Recovery, co-published by the Center for American Progress and PERI. Overall, these papers offer no challenge to the central explanations as to how investing in the green economy will provide significant benefits throughout the U.S. economy.
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