LINEAMIENTOS GENERALES DE UN PROGRAMA DE ESTABILIZACIÓN MACROECONÓMICA PARA LA TRANSICIÓN (General Guidelines for a Macroeconomic Stabilization Program for the Transition)

2021 ◽  
Author(s):  
Leonardo Vera ◽  
Luis Ramón Zambrano
Keyword(s):  
Macroeconomic Stabilization

scholarly journals The Case for Open-Market Purchases in a Liquidity Trap

2005 ◽  
Vol 95 (1) ◽  
pp. 110-137 ◽  
Author(s):  
Alan J Auerbach ◽  
Maurice Obstfeld
Keyword(s):  
Interest Rate ◽  
Large Scale ◽  
Open Market ◽  
Macroeconomic Stabilization ◽  
Short Term ◽  
Liquidity Trap ◽  
Welfare Impact ◽  
Dynamic General Equilibrium Model ◽  
Policy Tool ◽  
Economic Experience

Prevalent thinking about liquidity traps suggests that the perfect substitutability of money and bonds at a zero short-term nominal interest rate renders open-market operations ineffective for achieving macroeconomic stabilization goals. We show that even were this the case, there remains a powerful argument for large-scale open market operations as a fiscal policy tool. As we also demonstrate, however, this same reasoning implies that open-market operations will be beneficial for stabilization as well, even when the economy is expected to remain mired in a liquidity trap for some time. Thus, the microeconomic fiscal benefits of open-market operations in a liquidity trap go hand in hand with standard macroeconomic objectives. Motivated by Japan’s recent economic experience, we use a dynamic general-equilibrium model to assess the welfare impact of open-market operations for an economy in Japan’s predicament. We argue Japan can achieve a substantial welfare improvement through large open-market purchases of domestic government debt.

scholarly journals Fiscal fault, financial fix? Capital Markets Union and the quest for macroeconomic stabilization in the Euro Area

2018 ◽  
Vol 22 (2) ◽  
pp. 117-138 ◽  
Author(s):  
Benjamin Braun ◽  
Marina Hübner
Keyword(s):  
Capital Markets ◽  
Governance Structure ◽  
Macroeconomic Stabilization ◽  
European Monetary ◽  
Macroeconomic Conditions ◽  
Structural Capacity ◽  
Capital Markets Union ◽  
Fiscal Austerity ◽  
The Business Cycle ◽  
The Impact

This article seeks to situate and explain the European Union’s push for a Capital Markets Union – and thus for a more market-based financial system – in the broader context of macroeconomic governance in politically fractured polities. The current governance structure of the European Monetary Union severely limits the capacity of both national and supranational actors to provide a core public good: macroeconomic stabilization. While member states have institutionalized fiscal austerity and abandoned other macroeconomic levers, the European polity lacks the fiscal resources necessary to achieve stable macroeconomic conditions – smoothing the business cycle, ensuring growth and job creation and mitigating the impact of output shocks on consumption. Capital Markets Union, we argue, is the attempt of European policymakers to devise a financial fix to this structural capacity gap. Using its regulatory powers, the Commission, supported by the European Central Bank (ECB), seeks to harness private financial markets and instruments to provide the public policy good of macroeconomic stabilization. We trace how technocrats, think tanks, and financial-sector lobbyists, through the strategic use of knowledge and expertise, established securitization and market-based finance as solutions to the European Monetary Union’s governance problems.

Unemployment Insurance

2021 ◽  
pp. 572-588
Author(s):  
Ola Sjöberg ◽  
Eero Carroll ◽  
Joakim Palme
Keyword(s):  
Unemployment Insurance ◽  
Labour Supply ◽  
Welfare States ◽  
First Century ◽  
Macroeconomic Stabilization ◽  
Political Conflicts ◽  
Institutional Differences ◽  
Over Time ◽  
Cross National

Unemployment is one of the ‘old risks’ that modern welfare states can be seen to have responded to, but continues to be of great importance in the twenty-first century. Unemployment insurance also appears to be more ridden by political conflicts than other social policy programmes. This chapter describes the evolution of unemployment insurance schemes in eighteen long-standing welfare states. It dates the emergence of the first laws and traces the expansion of the coverage and replacement levels of benefits during the ‘Golden Age’ to more recent periods marked by economic crisis and retrenchment in the quality of unemployment protection. Four models of unemployment insurance are identified: voluntary state-subsidized, targeted, state corporatist, and comprehensive schemes. These models sum up institutional differences that are important for understanding the cross-national variation in a broad set of outcomes—ranging from individual conditions and behaviours, such as poverty and labour supply, to macroeconomic stabilization. The quality of unemployment insurance contributes to explain, among other things, differences in poverty rates over time and among nations.

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