How Neoliberal Policies and Reforms Undermined the Educational Profession
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COVID-19 and Economic Policy Toward the New Normal: a Monetary-Fiscal Nexus After the Crisis?
IN-DEPTH ANALYSIS Requested by the ECON committee Monetar y Dialogue Papers, November 2020 COVID-19 and Economic Policy Toward the New Normal: A Monetary-Fiscal Nexus after the Crisis? Policy Department for Economic, Scientific and Quality of Life Policies Directorate-General for Internal Policies Author: Thomas MARMEFELT EN PE 658.193 - November 2020 COVID-19 and Economic Policy Toward the New Normal: A Monetary-Fiscal Nexus after the Crisis? Monetary Dialogue Papers, November 2020 Abstract Current developments during the COVID-19 pandemic involve strongly complementary monetary and fiscal policy, but both as responses to COVID-19 and not the outcome of an emergent monetary-fiscal nexus. Therefore, the ECB maintains its independence by using unconventional monetary policy measures to reach price stability, according to its mandate. This document was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the Committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 19 November 2020. This document was requested by the European Parliament's committee on Economic and Monetary Affairs (ECON). AUTHOR Thomas MARMEFELT, CASE – Center for Social and Economic Research (Warsaw, Poland) and University of Södertörn (Huddinge, Sweden) ADMINISTRATOR RESPONSIBLE Drazen RAKIC EDITORIAL ASSISTANT Janetta CUJKOVA LINGUISTIC VERSIONS Original: EN ABOUT THE EDITOR Policy departments provide in-house and external expertise to support European Parliament committees -
Uncertainty and Hyperinflation: European Inflation Dynamics After World War I
FEDERAL RESERVE BANK OF SAN FRANCISCO WORKING PAPER SERIES Uncertainty and Hyperinflation: European Inflation Dynamics after World War I Jose A. Lopez Federal Reserve Bank of San Francisco Kris James Mitchener Santa Clara University CAGE, CEPR, CES-ifo & NBER June 2018 Working Paper 2018-06 https://www.frbsf.org/economic-research/publications/working-papers/2018/06/ Suggested citation: Lopez, Jose A., Kris James Mitchener. 2018. “Uncertainty and Hyperinflation: European Inflation Dynamics after World War I,” Federal Reserve Bank of San Francisco Working Paper 2018-06. https://doi.org/10.24148/wp2018-06 The views in this paper are solely the responsibility of the authors and should not be interpreted as reflecting the views of the Federal Reserve Bank of San Francisco or the Board of Governors of the Federal Reserve System. Uncertainty and Hyperinflation: European Inflation Dynamics after World War I Jose A. Lopez Federal Reserve Bank of San Francisco Kris James Mitchener Santa Clara University CAGE, CEPR, CES-ifo & NBER* May 9, 2018 ABSTRACT. Fiscal deficits, elevated debt-to-GDP ratios, and high inflation rates suggest hyperinflation could have potentially emerged in many European countries after World War I. We demonstrate that economic policy uncertainty was instrumental in pushing a subset of European countries into hyperinflation shortly after the end of the war. Germany, Austria, Poland, and Hungary (GAPH) suffered from frequent uncertainty shocks – and correspondingly high levels of uncertainty – caused by protracted political negotiations over reparations payments, the apportionment of the Austro-Hungarian debt, and border disputes. In contrast, other European countries exhibited lower levels of measured uncertainty between 1919 and 1925, allowing them more capacity with which to implement credible commitments to their fiscal and monetary policies. -
Estimating the Effects of Fiscal Policy in OECD Countries
Estimating the e®ects of ¯scal policy in OECD countries Roberto Perotti¤ This version: November 2004 Abstract This paper studies the e®ects of ¯scal policy on GDP, in°ation and interest rates in 5 OECD countries, using a structural Vector Autoregression approach. Its main results can be summarized as follows: 1) The e®ects of ¯scal policy on GDP tend to be small: government spending multipliers larger than 1 can be estimated only in the US in the pre-1980 period. 2) There is no evidence that tax cuts work faster or more e®ectively than spending increases. 3) The e®ects of government spending shocks and tax cuts on GDP and its components have become substantially weaker over time; in the post-1980 period these e®ects are mostly negative, particularly on private investment. 4) Only in the post-1980 period is there evidence of positive e®ects of government spending on long interest rates. In fact, when the real interest rate is held constant in the impulse responses, much of the decline in the response of GDP in the post-1980 period in the US and UK disappears. 5) Under plausible values of its price elasticity, government spending typically has small e®ects on in°ation. 6) Both the decline in the variance of the ¯scal shocks and the change in their transmission mechanism contribute to the decline in the variance of GDP after 1980. ¤IGIER - Universitµa Bocconi and Centre for Economic Policy Research. I thank Alberto Alesina, Olivier Blanchard, Fabio Canova, Zvi Eckstein, Jon Faust, Carlo Favero, Jordi Gal¶³, Daniel Gros, Bruce Hansen, Fumio Hayashi, Ilian Mihov, Chris Sims, Jim Stock and Mark Watson for helpful comments and suggestions. -
The Economic Policy Response to the Covid-19 Crisis Note for Discussion April 9, 2020 *
The economic policy response to the Covid-19 crisis Note for discussion April 9, 2020 * The dramatic social distancing measures that were needed to contain the Covid-19 outbreak and save lives have resulted in a major economic crisis. The magnitude and spread of the global decline in output exceeds that triggered by the Global Financial Crisis, if not the Great Depression. But the very nature of the crisis is unprecedented. As in previous major downturns, developing countries are facing a decline in foreign demand and a drop of commodity prices. They are also being locked out from global financial markets, suffer capital outflows and experience a fall of remittances. But in addition to the demand shortfall and the financial stress, this new crisis involves a major supply shock. Domestically, social distancing measures drastically reduce labor supply and increase transaction costs. Internationally, supply chains break down, which may result in shortages of key inputs and potentially in higher food prices. Another important difference with previous crises is the potential, recurrent return of the supply shock until a vaccine is developed, weighing on the prospects for recovery. A crisis of this magnitude and nature is not going to be reverted quickly. Even once the crisis bottoms out, widespread bankruptcies, increased unemployment and under-employment, and a depressed investment climate will make its effects persist. Moreover, developing countries are confronting this crisis from a weaker position compared to the Global Financial Crisis. Some financial sectors are vulnerable, corporate debt is generally high, and sovereign debt levels often constrain the fiscal space available to governments. -
The Oppressive Pressures of Globalization and Neoliberalism on Mexican Maquiladora Garment Workers
Pursuit - The Journal of Undergraduate Research at The University of Tennessee Volume 9 Issue 1 Article 7 July 2019 The Oppressive Pressures of Globalization and Neoliberalism on Mexican Maquiladora Garment Workers Jenna Demeter The University of Tennessee, Knoxville, [email protected] Follow this and additional works at: https://trace.tennessee.edu/pursuit Part of the Business Administration, Management, and Operations Commons, Business Law, Public Responsibility, and Ethics Commons, Economic History Commons, Gender and Sexuality Commons, Growth and Development Commons, Income Distribution Commons, Industrial Organization Commons, Inequality and Stratification Commons, International and Comparative Labor Relations Commons, International Economics Commons, International Relations Commons, International Trade Law Commons, Labor and Employment Law Commons, Labor Economics Commons, Latin American Studies Commons, Law and Economics Commons, Macroeconomics Commons, Political Economy Commons, Politics and Social Change Commons, Public Economics Commons, Regional Economics Commons, Rural Sociology Commons, Unions Commons, and the Work, Economy and Organizations Commons Recommended Citation Demeter, Jenna (2019) "The Oppressive Pressures of Globalization and Neoliberalism on Mexican Maquiladora Garment Workers," Pursuit - The Journal of Undergraduate Research at The University of Tennessee: Vol. 9 : Iss. 1 , Article 7. Available at: https://trace.tennessee.edu/pursuit/vol9/iss1/7 This Article is brought to you for free and open access by -
Inclusive Capitalism for the American Workforce Reaping the Rewards of Economic Growth Through Broad-Based Employee Ownership and Profit Sharing
AP PHOTO/STEVE PHOTO/STEVE AP H ELBER Inclusive Capitalism for the American Workforce Reaping the Rewards of Economic Growth through Broad-based Employee Ownership and Profit Sharing Richard B. Freeman, Joseph R. Blasi, and Douglas L. Kruse March 2011 WWW.AMERICANPROGRESS.ORG Inclusive Capitalism for the American Workforce Reaping the Rewards of Economic Growth through Broad-based Employee Ownership and Profit Sharing Richard B. Freeman, Joseph R. Blasi, and Douglas L. Kruse March 2011 Contents 1 Introduction and summary 5 The problem and the reform 5 The problem 7 The reform 11 The tax consequences 15 The consequences of our reform 15 Broad-based incentive systems work 18 Narrow incentive pay systems don’t work 22 The implications of reform 22 Taxes 23 Company responses 26 Worker responses and risk 28 Conclusion 29 Endnotes 32 About the authors and acknowledgements Introduction and summary The American model of capitalism needs major institutional reforms to regain its economic health and do what it has failed to do for the past three to four decades—ensure that the benefits of economic progress reach the bulk of our citizens. Well before the recent housing and financial crises, the Great Recession of 2007-2009, and the ensuing jobless recovery, the U.S. economy was not deliv- ering the benefits of sustained economic growth to the vast bulk of workers. From the mid-1970s through the 2000s the earnings of most American workers increased more slowly than the rate of productivity growth. Real median earnings barely rose even as gross domestic product per employed worker grew substan- tially.1 This contrasts with the nearly equal rates of real earnings growth and pro- ductivity growth from the turn of the 20th century through the early 1970s, which created a large prosperous middle class. -
Monetary Policy and the Long Boom
NOVEMBER/DECEMBER1998 John B. Taylor is a professor of economics at Stanford University. The article that follows is a reprint of The Homer Jones Lecture delivered at Southern Illinois University-Edwardsville on April 16, 1998. Kent Koch provided research assistance. this lecture. This month (April 1998) the Monetary Policy United States economy celebrates seven years of economic expansion. By definition and The Long an economic expansion is the period between recessions; that is, a period of con- Boom tinued growth without a recession. The last recession in the United States ended in April 1991, so as of this April we have had seven John B. Taylor years of expansion and we are still going. This current expansion is a record breaker: regret that I never had the opportunity to to be exact it is the second longest peacetime work or study with Homer Jones. But I expansion in American history. Iknow people who worked and studied with But what is more unusual is that this him, and I have enjoyed talking with them and current expansion was preceded by the reading about their recollections of Homer first longest peacetime expansion in Amer- Jones. What is most striking to me, of all that ican history. That expansion began in has been said and written about Homer Jones, November 1982 and continued through is his incessant striving to learn more about August 1990. It lasted seven years and economics and his use of rigorous economic eight months. Although the 1980s expansion research to improve the practical operation of was the first longest peacetime expansion in economic policy. -
Workforce Composition, Productivity and Pay: the Role of Firms in Wage Inequality
DISCUSSION PAPER SERIES IZA DP No. 13212 Workforce Composition, Productivity and Pay: The Role of Firms in Wage Inequality Chiara Criscuolo Ryo Kambayashi Alexander Hijzen Timo Leidecker Cyrille Schwellnus Oskar Nordström Skans Erling Barth Capucine Riom Wen-Hao Chen Duncan Roth Richard Fabling Balazs Stadler Priscilla Fialho Richard Upward Katarzyna Grabska Wouter Zwysen MAY 2020 DISCUSSION PAPER SERIES IZA DP No. 13212 Workforce Composition, Productivity and Pay: The Role of Firms in Wage Inequality Chiara Criscuolo Ryo Kambayashi OECD Hitotsubashi University Alexander Hijzen Timo Leidecker OECD and IZA OECD Cyrille Schwellnus Oskar Nordström Skans OECD Uppsala University and IZA Erling Barth Capucine Riom Institute for Social Research Oslo and IZA LSE Wen-Hao Chen Duncan Roth Statcan IAB Richard Fabling Balazs Stadler MOTU OECD Priscilla Fialho Richard Upward OECD University of Nottingham Katarzyna Grabska Wouter Zwysen Maastricht University OECD MAY 2020 Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Foundation, IZA runs the world’s largest network of economists, whose research aims to provide answers to the global labor market challenges of our time. Our key objective is to build bridges between academic research, policymakers and society. -
Economic Integration, Macroeconomic Policy and Micro Markets*
Economic integration, macroeconomic policy and micro markets¤ Christopher Loewald South African National Treasury ABSTRACT: The New Partnership For Africa’s Development (NEPAD) has been established to provide a substantive platform for African countries to initiate a series of policy steps toward more rapid economic growth and poverty reduction. Critics have argued that some of the policies, especially regional integration, will do more harm than good, and have cast the debate as a binary choice between the open and closed economy. Neither a fully closed nor a fully open economy is likely to maximize welfare and growth. In contrast to the notion of policy autonomy in the closed economy, the closed economy requires far more stringent application of price controls, monetary, …scal, and competition policies than do more open economies to prevent rising in‡ation and worsening income distribution. On balance, more open trade and capital relationships are preferred, because they help to ensure consistency between macroeconomic policy and microeconomic behaviour and are more conducive to improving income distribution. ¤Dr Christopher Loewald is Chief Director of International Economics in the National Treasury. The views and opinions in this paper are solely those of the author. They should not be attributed to the National Treasury. The author thanks Kevin Fletcher, Johann Fedderke, Adam Schwartzman and John Luiz for their helpful comments. Economic integration, macroeconomic policy and micro markets 1 1 Introduction Over the past year, NEPAD has emerged as the primary vehicle for bringing African countries into what might be described as the ‘reformist’ wing of the world’s economic and political community. -
The Neoliberal Rhetoric of Workforce Readiness
The Neoliberal Rhetoric of Workforce Readiness Richard D. Lakes Georgia State University, Atlanta, USA Abstract In this essay I review an important report on school reform, published in 2007 by the National Center on Education and the Economy, and written by a group of twenty-five panelists in the USA from industry, government, academia, education, and non-profit organizations, led by specialists in labor market economics, named the New Commission on the Skills of the American Workforce. These neoliberal commissioners desire a broad overhaul of public schooling, ending what is now a twelve-year high school curriculum after the tenth-grade with a series of state board qualifying exit examinations. In this plan vocational education (also known as career and technical education) has been eliminated altogether in the secondary-level schools as curricular tracks are consolidated into one, signifying a national trend of ratcheting-up prescribed academic competencies for students. I argue that college-for-all neoliberals valorize the middle-class values of individualism and self-reliance, entrepreneurship, and employment in the professions. Working-class students are expected to reinvent themselves in order to succeed in the new capitalist order. Imperatives in workforce readiness Elected officials in state and national legislatures and executive offices share a neoliberal perspective that public school students are academically deficient and under-prepared as future global workers. Their rhetoric has been used to re-establish the role of evidence-based measurement notably through report cards of student's grade-point-averages and test-taking results. Thus, states are tightening their diploma offerings and consolidating curricular track assignments. -
CHAPTER 18 Economic Policy
CHAPTER 18 Economic Policy REVIEWING THE CHAPTER CHAPTER FOCUS The purpose of this chapter is to introduce you to an area of public policy that affects everyone in one way or another: economic policy. The chapter covers both the divided attitudes that voters have toward a “good” economy and the competing theories that economists offer on how to obtain a good economy. The various agencies that participate in formulating government economic policy are reviewed, along with the many stages of producing and implementing the annual federal budget. Finally, the controversial areas of government spending and tax reform are discussed. After reading and reviewing the material in this chapter, you should be able to do each of the following: 1. Show how voters have contradictory attitudes regarding their own and others’ economic benefits. 2. List and briefly explain the four competing economic theories discussed in the chapter. 3. Assess the nature and effect of Reaganomics. 4. List the four major federal government agencies involved in setting economic policy, and explain the role of each. 5. Analyze federal fiscal policy in terms of the text’s four categories of politics. 6. Trace the history of federal government budgeting practices up to the present day. 7. Comment on the prospects and the desirability of lowering federal spending and reforming the income tax. STUDY OUTLINE I. Introduction A. Deficit spending, a feature of the government since 1960 B. National debt is the total of all deficits C. Explanations 1. Economic reason a) Debt is a concern only if payments cannot be met b) Or the currency is no longer regarded as stable and valuable c) Interest on the debt is affordable—8 percent of all federal expenditures d) Future economic demands on the government may create a problem 2. -
When the Periphery Became More Central: from Colonial Pact to Liberal Nationalism in Brazil and Mexico, 1800-1914 Steven Topik
When the Periphery Became More Central: From Colonial Pact to Liberal Nationalism in Brazil and Mexico, 1800-1914 Steven Topik Introduction The Global Economic History Network has concentrated on examining the “Great Divergence” between Europe and Asia, but recognizes that the Americas also played a major role in the development of the world economy. Ken Pomeranz noted, as had Adam Smith, David Ricardo, and Karl Marx before him, the role of the Americas in supplying the silver and gold that Europeans used to purchase Asian luxury goods.1 Smith wrote about the great importance of colonies2. Marx and Engels, writing almost a century later, noted: "The discovery of America, the rounding of the Cape, opened up fresh ground for the rising bourgeoisie. The East-Indian and Chinese markets, the colonisation of America [north and south] trade with the colonies, ... gave to commerce, to navigation, to industry, an impulse never before known. "3 Many students of the world economy date the beginning of the world economy from the European “discovery” or “encounter” of the “New World”) 4 1 Ken Pomeranz, The Great Divergence , Princeton: Princeton University Press, 2000:264- 285) 2 Adam Smith in An Inquiry into the Nature and Causes of the Wealth of Nations (1776, rpt. Regnery Publishing, Washington DC, 1998) noted (p. 643) “The colony of a civilized nation which takes possession, either of a waste country or of one so thinly inhabited, that the natives easily give place to the new settlers, advances more rapidly to wealth and greatness than any other human society.” The Americas by supplying silver and “by opening a new and inexhaustible market to all the commodities of Europe, it gave occasion to new divisions of labour and improvements of art….The productive power of labour was improved.” p.