Fiscal, Monetary and Supply Side Policy
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The Economist explains economics: What is the impossible trinity? | The Economist

The Economist explains economics: What is the impossible trinity? | The Economist | Fiscal, Monetary and Supply Side Policy | Scoop.it
This week “The Economist explains” is given over to economics. Today’s is the last in a series of six explainers on a seminal idea.
IN THE run-up to the launch of the euro, in 1999, aspiring members pegged their currencies to the German mark. As a consequence they were obliged to shadow the Bundesbank’s monetary policy.
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MPs condemn free schools policy as incoherent and wasteful

MPs condemn free schools policy as incoherent and wasteful | Fiscal, Monetary and Supply Side Policy | Scoop.it
Report says DfE must use funding more cost-effectively and notes 60% of schools are more than 40 years old and in disrepair
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Evaluation of a key SSP of this government
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The Case for Fiscal Policy to Support Structural Reforms

The Case for Fiscal Policy to Support Structural Reforms | Fiscal, Monetary and Supply Side Policy | Scoop.it
By Angana Banerji, Era Dabla-Norris, Romain Duval, and Davide Furceri Version in Deutsch (German) Many advanced countries need  structural reforms to make their economies more productive and raise long-term living standards.  Our new research shows that provided countries can afford it, fiscal policy, through spending or tax incentives, can help governments overcome some obstacles to the reforms,…
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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?
Mr Christopher's insight:

Helicopter money!!

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Amar Sandhu's curator insight, January 24, 2016 9:18 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.
Mr Christopher's insight:

Supply side policy

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The battle of three centuries: The history of central banks | The Economist

The battle of three centuries: The history of central banks | The Economist | Fiscal, Monetary and Supply Side Policy | Scoop.it
TWENTY years ago next month, the British government gave the Bank of England the freedom to set interest rates.
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Apprentice Sandwich Artist - Find an apprenticeship

Apprentice Sandwich Artist - Find an apprenticeship | Fiscal, Monetary and Supply Side Policy | Scoop.it
We’ve introduced a new way to find and apply for an apprenticeship in England.
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Apprenticeships are great but honestly, is this the best we can do?
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Budget Day Nonsense | National Institute of Economic and Social Research

Budget Day Nonsense | National Institute of Economic and Social Research | Fiscal, Monetary and Supply Side Policy | Scoop.it
For the last several budgets/autumn statements I have agreed to write an immediate response for some media outlet, and have therefore felt obliged to watch either the speech itself, or the media reports on the day. The good news is that no one has asked
Mr Christopher's insight:
What any macroeconomist should ask of this budget is has the Chancellor done enough to get UK interest rates off the zero lower bound: to get us out of what economists call a liquidity trap. When interest rates have gone as low as the Bank of England feels able to take them, then it has lost control of the economy. That is the situation right now. The only duty of the Chancellor in that situation is to give the Bank back control through a fiscal stimulus. [1] If he does do that the short term deficit and borrowing numbers that go with that stimulus are completely irrelevant. If he does not do that his budget has failed.
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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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Alex Gouws's curator insight, May 3, 2017 9:59 PM
One of the main benefits of large scale migration is that it leads to an increased population , this means there are more people trying to get the same amount of jobs , although this could lead to higher unemployment could also lead to higher efficiency and lowered factors of production . This is because workers have less power , if they aren't happy with wages they can leave because there are plenty of people with which they can be replaced. Similarly people are willing to accept lower ages simply for the chance of employment.
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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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Bank of England KnowledgeBank - The economy made simple

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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?
Mr Christopher's insight:

Supply side economics

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ralphlopes's curator insight, January 25, 2016 8:14 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.