Found 377 article(s) in category 'Monetary Policy'

Two Cheers for the Foreign Tax Credit, Even in the BEPS Era

Two Cheers for the Foreign Tax Credit, Even in the BEPS Era. Stephen Shay, November November 2016, Paper, “Reform of the U.S. international income taxation system has been a hotly debated topic for many years. The principal competing alternatives are a territorial or exemption system and a worldwide system. For reasons summarized in this Article, we favor worldwide taxation if it is real worldwide taxation; that is, a non-deferred U.S. tax is imposed on all foreign income of U.S. residents at the time the income is earned. However, this approach is not acceptable unless the resulting double taxation is alleviated. The longstanding U.S. approach for handling the international double taxation problem is a foreign tax credit limited to the U.S. levy on the taxpayer’s foreign income.Link

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India’s Currency Exchange and The Curse of Cash

India’s Currency Exchange and The Curse of Cash. Kenneth Rogoff, November 17, 2016, Opinion, “On the same day that the United States was carrying out its 2016 presidential election, India’s Prime Minister, Narendra Modi, announced on national TV that the country’s two highest-denomination notes, the 500 and 1000 rupee (worth roughly $7.50 and $15.00) would no longer be legal tender by midnight that night, and that citizens would have until the end of the year to surrender their notes for new ones. His stated aim was to fight “black money”: cash used for tax evasion, crime, terror, and corruption. It was a bold, audacious move to radically alter the mindset of an economy where less than 2% of citizens pay income tax, and where official corruption is endemic.Link

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Health and Taxes

Health and Taxes. David Cutler, October 25, 2016, Paper, “Viewing health care through the lens of a social issue prompts such questions as: What policies would best improve the population’s health? How can report cards be used to improve the quality of surgery? Where are there opportunities for additional disease prevention? The questions here are intricate and detailed. Some of the issues are clinical, and advice from physicians is actively sought and welcomed. For example, no one would develop a pay-for-performance system for surgeons without extensive involvement of the relevant surgical societies.Link

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The Return of Dollar Shortages

The Return of Dollar Shortages. Carmen Reinhart, October 24, 2016, Opinion, “Immediately after World War II ended, a new phrase entered the economic lexicon: “dollar shortage.” European economies were coping with extensive war-related damage and a broad array of impediments to their efforts to rebuild their industrial base. At the time, the United States was the only provider of capital equipment for reconstruction. So, without access to US dollars, Europe’s economies could not obtain the inputs needed to increase their exports.Link

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What Could Go Wrong in America?

What Could Go Wrong in America? Martin Feldstein, October 16, 2016, Opinion, “Although the United States economy is in good shape – with essentially full employment and an inflation rate close to 2% – a world of uncertainty makes it worthwhile to consider what could go wrong in the year ahead. After all, if the US economy runs into serious trouble, there will be adverse consequences for Europe, Japan, and many other countries.Link

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Ability to Fight Recession a Matter of Serious Concern

Ability to Fight Recession a Matter of Serious Concern. Lawrence Summers, October 10, 2016, Video, “The concern about low interest rates and the ability to fight off a recession should be keeping central banks up at night, former Treasury Secretary Larry Summers told CNBC on Monday. That’s because interest rates typically come down 500 basis points to contain a recession, and according to market pricing, there’s not going to be 500 basis points of room anytime soon, he said in an interview with “Closing Bell.”Link

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Is the Fed Playing Politics?

Is the Fed Playing Politics? Kenneth Rogoff, October 3, 2016, Opinion, “In his recent debate with his opponent Hillary Clinton, Republican presidential candidate Donald Trump pressed his claim that US Federal Reserve Chair Janet Yellen is politically motivated. The Fed, Trump claims, is applying overdoses of monetary stimulus to hypnotize voters into believing that economic recovery is underway.Link

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