scholarly journals Economic Déjà vu

2017 ◽  
Vol 11 (1) ◽  
pp. 14-19
Author(s):  
Andrew Johnson
Keyword(s):  
United States ◽  
Monetary Policy ◽  
Interest Rates ◽  
Federal Reserve ◽  
Current System ◽  
The United States ◽  
Low Interest Rates ◽  
Near Future ◽  
American Economy ◽  
The U.S

The recent recession that swept through this and many countries worldwide had many causes, one of which was low interest rates in the United States. Loose monetary policy pursued by former Chairman of the Federal Reserve Alan Greenspan was a major component of the housing crash and following recession. Furthermore, the Fed’s current monetary policy is extremely similar to policy pursued before the 2008 recession. The current system of monetary policy implemented in the U.S., necessitating that credit and debt expand forever, is a dangerous and potentially disastrous policy to be pursuing. Unless a change takes place, the American economy could experience another — and possibly worse — recession in the near future. 

scholarly journals The Political Economy of the Budget Surplus in the United States

2000 ◽  
Vol 14 (3) ◽  
pp. 3-20 ◽  
Author(s):  
Alberto Alesina
Keyword(s):  
United States ◽  
Interest Rates ◽  
Budget Deficit ◽  
The United States ◽  
Defense Spending ◽  
The Political ◽  
Budget Balance ◽  
Political Forces ◽  
Low Interest Rates ◽  
The U.S

Current surpluses in the U.S. have been achieved by a combination of a strong economy, low interest rates, and sharp cuts in defense spending. These surpluses follow a period (the 1980s) of rather exceptional budget deficit. This paper investigates the origin, size, and expected future patterns of the U.S. budget balance. It discusses how different political forces may generate alternative fiscal scenarios for the U.S. in the next decade.

scholarly journals Deleveraging and Monetary Policy: Japan Since the 1990s and the United States Since 2007

2012 ◽  
Vol 26 (3) ◽  
pp. 177-202 ◽  
Author(s):  
Kazuo Ueda
Keyword(s):  
United States ◽  
Monetary Policy ◽  
Great Recession ◽  
Federal Reserve ◽  
The United States ◽  
Federal Funds ◽  
Federal Funds Rate ◽  
The Great Recession ◽  
Policy Responses ◽  
The U.S

As the U.S. economy works through a sluggish recovery several years after the Great Recession technically came to an end in June 2009, it can only look with horror toward Japan's experience of two decades of stagnant growth since the early 1990s. In contrast to Japan, U.S. policy authorities responded to the financial crisis since 2007 more quickly. Surely, they learned from Japan's experience. I will begin by describing how Japan's economic situation unfolded in the early 1990s and offering some comparisons with how the Great Recession unfolded in the U.S. economy. I then turn to the Bank of Japan's policy responses to the crisis and again offer some comparisons to the Federal Reserve. I will discuss the use of both the conventional interest rate tool—the federal funds rate in the United States, and the “call rate” in Japan—and nonconventional measures of monetary policy and consider their effectiveness in the context of the rest of the financial system.

Understanding Interest Rates and the Economy

2019 ◽  
pp. 81-110 ◽  
Author(s):  
Alan N. Rechtschaffen
Keyword(s):  
United States ◽  
Monetary Policy ◽  
Interest Rates ◽  
Federal Reserve ◽  
Balance Sheet ◽  
The United States ◽  
Federal Reserve System ◽  
Federal Open Market Committee ◽  
Reserve Banking ◽  
Reserve System

This chapter begins with a discussion of the Federal Reserve and the Federal Reserve Banking System. The Federal Reserve System was created by Congress under the Federal Reserve Act “to provide for the establishment of federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States and for other purposes.” The Federal Reserve System comprises a central Board of Governors appointed by the president of the United States and confirmed by the Senate, and 12 regional Reserve banks. Monetary policy is set by the Federal Open Market Committee (FOMC). The remainder of the chapter covers monetary policy, quantitative easing, balance sheet normalization and the FOMC minutes.

scholarly journals Causes of The Outbreak of the Eurozone Crises: The Role of the Usa and the European Central Bank Monetary Policy

e-Finanse ◽  
2015 ◽  
Vol 11 (2) ◽  
pp. 47-63
Author(s):  
Natalia Białek
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Interest Rates ◽  
European Central Bank ◽  
Institutional Design ◽  
Global Financial Crisis ◽  
European Central ◽  
Low Interest Rates ◽  
The Usa ◽  
The U.S

Abstract This paper argues that the loose monetary policy of two of the world’s most important financial institutions-the U.S. Federal Reserve Board and the European Central Bank-were ultimately responsible for the outburst of global financial crisis of 2008-09. Unusually low interest rates in 2001- 05 compelled investors to engage in high risk endeavors. It also encouraged some governments to finance excessive domestic consumption with foreign loans. Emerging financial bubbles burst first in mortgage markets in the U.S. and subsequently spread to other countries. The paper also reviews other causes of the crisis as discussed in literature. Some of them relate directly to weaknesses inherent in the institutional design of the European Monetary Union (EMU) while others are unique to members of the EMU. It is rather striking that recommended remedies tend not to take into account the policies of the European Central Bank.

تحليل الاثار المالية والنقدية لتزايد الدين العام الداخلي في الولايات المتحدة الامريكية للمدة 2002- 2018

2021 ◽  
Vol 2020 (67) ◽  
pp. 75-100
Author(s):  
مالك عبد الرحيم محمد ◽  
أ.د. ميثم العيبي إسماعيل
Keyword(s):  
United States ◽  
Interest Rates ◽  
Public Debt ◽  
United States Of America ◽  
Budget Deficit ◽  
Market Access ◽  
The United States ◽  
Public Expenditures ◽  
Continuous Increase ◽  
American Economy

The American economy suffers from a general budget deficit, mainly due to the high public expenditures, especially the military, as the United States of America occupies the first place in the world in the proportion of military spending, and the budget deficit is mainly financed through the sale of government securities, which led to an increase in the volume of public debt In the United States of America, which is a dangerous indicator, especially after interest payments on public debt exceeded the barrier of $ 500 billion for the year 2018, which pushes them to borrow again to finance these benefits, this cumulative and continuous increase in the size of public debt works to influence the economic variables Monetary and financial. The research aims to analyze the development of internal public debt in the United States of America and its most important causes, in addition to clarifying the mechanisms and methods used to alleviate the severity of the internal public debt without compromising the ability of the economy or the ability to repay previous debts to maintain investor confidence in the strength of the American economy. The research reached several results, the most prominent of which is that the large increase in the volume of the internal public debt and the consequent increase in the money supply did not negatively affect the monetary side of the economy as inflation rates did not reach high levels and international reserves increased, accompanied by a decrease in interest rates. While the research presented several recommendations, including the need to achieve financial discipline and market access to borrow at the lowest possible costs by issuing debt regularly, in addition to avoiding resorting to any special measures to increase the volume of public debt and adhere to the debt ceiling approved by the US Congress.

Relationship Between Second Life and the U.S. Economy

2010 ◽  
pp. 82-94 ◽  
Author(s):  
Rosemarie Reynolds ◽  
Yusuke Ishikawa ◽  
Amanda Macchiarella
Keyword(s):  
United States ◽  
Market Economy ◽  
Second Life ◽  
Federal Reserve ◽  
Significant Relationship ◽  
The United States ◽  
Financial Data ◽  
Goods And Services ◽  
The Relationship ◽  
The U.S

Second Life is a virtual world designed to be a free, laissez-faire market economy in which Linden Dollars are used to buy and sell goods and services. This study investigated the relationship between the economies of Second Life and the United States, using financial data collected from Linden Lab and the Federal Reserve. Partial correlation analyses were computed between two pairs of economic measures, and our results indicated that there was a significant relationship between the two economies.

The Royal Navy and Economic Warfare against the United States during the War of 1812

2020 ◽  
pp. 137-156
Author(s):  
John B. Hattendorf
Keyword(s):  
United States ◽  
The United States ◽  
War Of 1812 ◽  
Napoleonic Wars ◽  
Royal Navy ◽  
Recent Scholarship ◽  
Economic Warfare ◽  
American Economy ◽  
The U.S

This chapter provides an overview of recent scholarship on the Royal Navy’s economic blockade of the United States between 1812 and 1815. The article shows how the combination of British naval forces and privateers slowly strangled the American economy and nearly immobilized the U.S. Navy. Despite the Royal Navy’s very successful application of economic warfare, it was not decisive. Due to financial exhaustion following the Napoleonic wars, Parliament would not support the naval and military funding necessary to impose the harsh peace terms for which economic warfare had laid the foundation.

scholarly journals Low interest rates and executive risk-taking incentives: Evidence from the United States

2020 ◽  
pp. 234094442092771
Author(s):  
Paula Castro ◽  
Maria T Tascon ◽  
Francisco J Castaño ◽  
Borja Amor-Tapia
Keyword(s):  
United States ◽  
Interest Rates ◽  
Risk Taking ◽  
The United States ◽  
Jel Classification ◽  
Short Term ◽  
Monetary Policies ◽  
Stock Return Volatility ◽  
Low Interest Rates ◽  
Institutional Shareholders

This article contributes to the literature by indicating how certain monetary policies impact the compensation incentives of US managers to adopt riskier business policies. Specifically, based on the agency problems between shareholders and managers and between shareholders and creditors, a research framework is developed to identify the influence of low interest rates on managers’ risk-taking incentives proxied by the sensitivity of executive compensation to stock return volatility (Vega). We examine 1,293 firms in the United States between 2000 and 2016, and the results indicate that low interest rates increase the managers’ short-term risk-taking incentives and that those incentives contribute to the risk effectively taken by the firm. Our results are robust to the use of alternative monetary proxies and to the presence of passive versus active institutional shareholders. JEL CLASSIFICATION E41; E43; E51; M12; M52

scholarly journals The Revival of Nuclear Competition in an Altered Geopolitical Context: A Chinese Perspective

Daedalus ◽  
2020 ◽  
Vol 149 (2) ◽  
pp. 56-68
Author(s):  
Li Bin
Keyword(s):  
United States ◽  
International Cooperation ◽  
Nuclear Weapons ◽  
Nuclear Weapon ◽  
The United States ◽  
Strategic Objectives ◽  
Chinese Perspective ◽  
The Future ◽  
Near Future ◽  
The U.S

The U.S. government considers “power competition” to be the nature of the relations among big powers, and that it will have an impact on the evolving nuclear order in the near future. When big powers worry about power challenges from their rivals, they may use the influence of nuclear weapons to defend their own power and therefore intensify the danger of nuclear confrontation. We need to manage the nuclear relations among nuclear-weapon states and nuclear-armed states to avoid the risk of nuclear escalation. The fact is that big powers including the United States have neither the interest nor the capability to expand their power, and understanding this might cause big powers to lose their interest in power competition. If we promote dialogue among nuclear-weapon states and nuclear-armed states on their strategic objectives, it is possible to reduce the power competition that results from misperceptions and overreactions. Some other factors, for example, non- nuclear technologies and multinuclear players, could complicate the future nuclear order. We therefore need to manage these factors as well and develop international cooperation to mitigate nuclear competition.

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