Fiscal, Monetary and Supply Side Policy
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Negative interest rates: absolutely everything you need to know

Negative interest rates: absolutely everything you need to know | Fiscal, Monetary and Supply Side Policy | Scoop.it
Of all the monetary measures used to steady a wobbling economy, perhaps the most controversial and least understood is the practice of cutting interest rates to below zero. Two leading economists from the IMF and World Economic Forum tell us how it works.
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How quantitative easing works | VOX, CEPR’s Policy Portal

How quantitative easing works | VOX, CEPR’s Policy Portal | Fiscal, Monetary and Supply Side Policy | Scoop.it
Former Federal Reserve Chairman Ben Bernanke famously quipped in 2014 that QE “works in practice, but it doesn’t work in theory”. Central banks around the world seem convinced; among others, the ECB, the Bank of England, and the Bank of Japan have recently expanded their large-scale asset purchasing programmes (LSAPs) to stimulate their economies.
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The return of fiscal policy – a step in the right direction

The return of fiscal policy – a step in the right direction | Fiscal, Monetary and Supply Side Policy | Scoop.it
Monetary policy is reaching the limits of its usefulness and even now may be counterproductive
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Who’s buying Britain’s debt?

The UK must this year borrow £131bn to repay its old debts and meet the day-to-day costs of running the nation. But with the country reliant o
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This is a superbly clear short video from the Financial Times on how the UK government must compete on then global market for investors prepared to buy new issues of gilts (government bonds). The UK must this year borrow £131bn to repay its old debts and meet the day-to-day costs of running the nation. But with the country reliant on international owners of its debt, Elaine Moore asks: can it continue to attract foreign investors? China. Norway and the United States are three countries with significant holdings of UK government debt and demand remains strong with ten-year bond yields at historic lows. But the national debt is now estimated at around £25,000 for each of our population.
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Why Not Just Print More Money?

Why Not Just Print More Money? | Fiscal, Monetary and Supply Side Policy | Scoop.it
A prominent economist has a radical proposal for stimulating the economy: just add money to everyone’s bank account. It is crazy enough to work?
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Helicopter money!!

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Amar Sandhu's curator insight, January 24, 4:18 PM

John Cassidy begins to inform about the changes in the US economies expansion over the past 50 years. While growth was fairly rapid at the beginning of this period, the economy has been expanding by less than 2% per year since 2001: our current situation has been called a state of 'secular stagnation'. After many other methods of kick starting the economy have been unsuccessful, Adair Turner has brought about a new idea to boost the current status of the US economy: create more money and hand it out to people. He states in his new book, “Between Debt and the Devil: Money, Credit, and Fixing Global Finance”: “A government could, for instance, pay $1000 to all citizens by electronic transfer to their commercial bank deposit accounts.” He states that people can spend the money on non-essential goods, such as vacations. This boost to the economy, he says should be "broadly proportional to the value of new money created."

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Press Release: Design flaws in the Government’s fiscal framework and surplus target | National Institute of Economic and Social Research

Press Release: Design flaws in the Government’s fiscal framework and surplus target | National Institute of Economic and Social Research | Fiscal, Monetary and Supply Side Policy | Scoop.it
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How much is too much?

How much is too much? | Fiscal, Monetary and Supply Side Policy | Scoop.it
PUBLIC debt in rich countries exploded between 2007 and 2012, rising from an average of 53% of GDP to nearly 80%. Some people think this is a problem, and say that...
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But when a government is faced with a high debt load, is it better to impose austerity and pay it down, or take advantage of low interest rates to invest? The answer depends on the amount of “fiscal space” a government enjoys. This concept refers to the distance between a government’s debt-to-GDP ratio and an “upper limit”, calculated by Moody’s, a ratings agency, beyond which action would have to be taken to avoid default. 

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U.K. Election Proves Nothing About Austerity

U.K. Election Proves Nothing About Austerity | Fiscal, Monetary and Supply Side Policy | Scoop.it
It's not a win for Keynesians either.
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Wells Capital's Paulsen: Economic Policy Should Be Focused on Supply Instead of Demand

Wells Capital's Paulsen: Economic Policy Should Be Focused on Supply Instead of Demand | Fiscal, Monetary and Supply Side Policy | Scoop.it
The economy has experienced a subpar recovery from the 2007-09 recession, growing only 2.2 percent annualized since then, despite massive monetary and fiscal policy stimulus.
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Supply side policy

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Massive boost for eurozone unveiled

Massive boost for eurozone unveiled | Fiscal, Monetary and Supply Side Policy | Scoop.it
The European Central Bank will inject at least €1.1 trillion into the eurozone economy through a huge bond-buying programme sending the euro to an 11-year low.
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A beginner's guide to quantitative easing - Forum:Blog

A beginner's guide to quantitative easing - Forum:Blog | Fiscal, Monetary and Supply Side Policy | Scoop.it
Whether quantitative easing worked will be the most important economic question of our era, and yet most people don't know what it means, writes Mike Bird.
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The Laffer Curve and UK Corporation Tax

The Laffer Curve and UK Corporation Tax | Fiscal, Monetary and Supply Side Policy | Scoop.it
I was drawn to a Telegraph headline, Europe is jealous as Britain resurrects the Laffer Curve. According to the author, by next year Britain will have the equal lowest headline rate of corporation tax in the G20.The Laffer Curve offers an intoxicating promise to politicians. It suggests that if the tax.
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The Costs and Benefits of Large Scale Migration  - Civitas

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The impact of refugees on their host economy depends on their level of education, entrepreneurial capacity and integration in the labour market. These vary greatly depending on their country of origin. According to Statistics Sweden, more than 40% of Syrians in the country in 2014  had at least upper secondary education, compared to 20% of those from Afghanistan and 10% for those coming from Eritrea. 22 If this pattern holds for other host countries, it would suggest that the UK might benefit economically from the entry of more adult refugees from Syria. The self-interest case for admitting most other types of refugee is weaker.
Within reason we have a moral obligation to give asylum to genuine refugees. We also have an obligation to help those who are given asylum to find work commensurate with their skills, thereby making them useful members of our own society and enhancing their capacity to be useful if they eventually return home.
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Reserve Bank's interest rate cutting capacity may be at an end: Treasurer Scott Morrison - ABC News (Australian Broadcasting Corporation)

Reserve Bank's interest rate cutting capacity may be at an end: Treasurer Scott Morrison - ABC News (Australian Broadcasting Corporation) | Fiscal, Monetary and Supply Side Policy | Scoop.it
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What are bonds and how do they work? - BBC News

What are bonds and how do they work? - BBC News | Fiscal, Monetary and Supply Side Policy | Scoop.it
BBC World Service economics correspondent Andrew Walker breaks down the world of bonds.
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3 key questions for the future of macroeconomics

3 key questions for the future of macroeconomics | Fiscal, Monetary and Supply Side Policy | Scoop.it
Following the Great Recession, public finance remains high on the global policy agenda. The expansionary monetary policy and quantitative easing of the major central banks, including the latecomer European Central Bank (ECB), have taken immediate collapse off the agenda and provided a lifeline to the world economy. Yet, without lowering debt and ensuring sustainable fiscal systems (including in a social sense) two risks emerge: either the system cracks, or at best, growth is too slow for structural changes required. And without reducing structural and long-term unemployment, the social consensus to address the fiscal problem cannot be created.
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Time to ask why we are still in the era of ultra-low rates - FT.com

Time to ask why we are still in the era of ultra-low rates - FT.com | Fiscal, Monetary and Supply Side Policy | Scoop.it
The quiet period for Britain’s monetary policy is drawing to an end. Over the next few months, the Bank of England’s Monetary Policy Committee will again need to pay more than lip service to the idea it should increase the cost of borrowing.
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The £93bn handshake: businesses pocket huge subsidies and tax breaks | Politics | The Guardian

The £93bn handshake: businesses pocket huge subsidies and tax breaks | Politics | The Guardian | Fiscal, Monetary and Supply Side Policy | Scoop.it
Guardian’s analysis reveals that hidden subsidies, direct grants and tax breaks to big business amount to £3,500 a year given by each UK household
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Direct aid, subsidies, tax breaks – the hidden welfare budget we don’t debate - perhaps the focus of austerity should elsewhere...

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Britain: For the Love of God, Please Stop David Cameron

Britain: For the Love of God, Please Stop David Cameron | Fiscal, Monetary and Supply Side Policy | Scoop.it
On May 7 (this Thursday), Britain has a general election. I care deeply about British politics--I did my BA over there and will return to do my PhD there this fall. But more importantly, David Came...
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Austerity negatively correlates with growth throughout the European Union:

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Productivity: the UK's key economic challenge - BBC News

Productivity: the UK's key economic challenge - BBC News | Fiscal, Monetary and Supply Side Policy | Scoop.it
How will rising employment levels affect the UK's poor productivity growth?
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Supply side economics

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ralphlopes's curator insight, January 25, 3:14 PM

This article concisely highlights the successes and failures of the UK in productivity and by definition much success lies within supply side policies. Vastly reduced unemployment can be attributed to rising wages within the private sector. It states that low interest rates are an important factor holding back productivity, however with a possible rise in interest rates, investment into the economy may rise and bring with it a boost in productivity. The author states  "faced with cheaper workers, firms may have decided to hold back on investing in new equipment," although clearly a positive in reducing the unemployment levels, decreased wages and the decrease in physical capital held by businesses may result in a productivity loss in the future as machinery becomes obsolete and operating methods become outdated and relatively inefficient.

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Tories vow to slash 'burdensome' red tape for business by £10bn

Tories vow to slash 'burdensome' red tape for business by £10bn | Fiscal, Monetary and Supply Side Policy | Scoop.it
Sajid Javid, who replaced Vince Cable as business secretary, will also unveil plans to create 2m jobs over next five years in new enterprise bill
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Supply side policy

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The European Debt Crisis Visualized: Video

The European Debt Crisis Visualized: Video | Fiscal, Monetary and Supply Side Policy | Scoop.it
At the heart of the European debt crisis is the euro, the currency that ties together 18 countries in an intimate manner. So when one country teeters on the brink of financial collapse, the entire continent is at risk. How did such a flawed system come to be? Bloomberg Television and Jonathan Jarvis present "The European Debt Crisis Visualized." (Source: Bloomberg)
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QE alone plus supply side reforms will not save the Eurozone - Royal Economic Society

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