Found 620 article(s) in category 'Monetary Policy'

Q&A on COVID-19 with Faculty Director Rema Hanna

Q&A on COVID-19 with Faculty Director Rema Hanna. Rema Hanna, March 25, 2020, Opinion, “Rema Hanna is the Jeffrey Cheah Professor of South-East Asia Studies and Chair of the International Development Area at the Harvard Kennedy School. She serves as the Faculty Director of Evidence for Policy Design (EPoD) at Harvard University’s Center for International. Her research revolves around improving the provision of public services in developing and emerging nations, particularly for the very poor. In light of the global COVID-19 outbreak, Rema provides her expertise as a development economist to answer questions on the economic impacts of a pandemic, like the novel coronavirus, and the resulting effects for developing countries. See below for a Q&A with EPoD Faculty Director Rema Hanna, conducted on March 25, 2020.Link

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The economy and policy in the coronavirus crisis to date

The economy and policy in the coronavirus crisis to date. James Stock, Robert Barro, Jason Furman, Jeremy Stein, , Video, “This conversation took place during the Spring 2020 conference on the Brookings Papers on Economic Activity. Participants included Daniel Lewis of the Federal Reserve Bank of New York, Jan Hatzius from Goldman Sachs, and Lucrezia Reichlin of the London Business School discussing the economic outlook in the face of COVID-19. Robert Barro of Harvard University and François Velde of the Federal Reserve Bank of Chicago discussed lessons learned from the Spanish Flu, and Jason Furman and Jeremy Stein, both from Harvard University, discussed potential policy responses. Brookings Nonresident Senior Fellow and Harvard University Professor of Economics James Stock moderated the conversation.Link

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Is There an End in Sight to the Global Market Meltdown?

Is There an End in Sight to the Global Market Meltdown? Jason Furman, March 16, 2020, Video, “The financial fallout of the epidemic is dramatic, with grim headlines predicting a deep global recession. Markets keep tumbling, no matter how much the U.S. Federal Reserve and other central banks try to intervene. This means businesses and workers are also in freefall, wondering whether or where they’ll find a safety net. Harvard Kennedy school professor Jason Furman was a top economic advisor to President Barack Obama during the last meltdown — the financial crisis of 2008.Link

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The Case for a Big Coronavirus Stimulus

The Case for a Big Coronavirus Stimulus. Jason Furman, March 5, 2020, Opinion, “Given the mounting economic risks posed by the spread of the novel coronavirus, Congress should act swiftly but thoughtfully to pass fiscal stimulus. This would be in addition to continuing to provide ample funding for medical research, testing, prevention and treatment. The stimulus’s total cost would be about $350 billion, but could be larger or smaller depending on how the economic situation unfolds. Congress should design it to be accelerated, big, comprehensive and dynamic.Link

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What the Fed can do to help with with coronavirus’s economic aftershock

What the Fed can do to help with with coronavirus’s economic aftershock. Lawrence Summers, March 3, 2020, Opinion, “While the Fed acted preemptively Tuesday, it is still too early to say much that is definitive about the economic threat from coronavirus. We do know, however, that this is one of the most dangerous and disruptive disease outbreaks since World War I. Science and medicine have of course progressed massively since the 1918 Spanish flu. On the other hand, the world has nearly five times as many people now, and our interconnection is vastly greater, with 2.8 million people flying each day, in the United States alone, inside metal tubes with recirculating atmospheres. Large fractions of the world population live in places with little ability to carry out systematic health policies.” Link

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Accepting the Reality of Secular Stagnation

Accepting the Reality of Secular Stagnation. Lawrence Summers, March 2020, Opinion, “A fundamental difference between natural science theories and social science theories is that natural science theories, if valid, hold for all times and places. In contrast, the relevance of economic theories depends on context. Malthus’s theory of food availability was valid for the millennia before he formulated it, but not after the industrial revolution. Keynes’s ideas were much more valid during the Great Depression than during the inflationary 1970s.Link

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That 1970s Feeling

That 1970s Feeling. Kenneth Rogoff, March 2, 2020, Opinion, “Policymakers and too many economic commentators fail to grasp how the next global recession may be unlike the last two. In contrast to recessions driven mainly by a demand shortfall, the challenge posed by a supply-side-driven downturn is that it can result in sharp drops in production, generalized shortages, and rapidly rising prices.Link

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Banking: Intermediation or Money Creation S. Marglin, What Do Banks Do?

Banking: Intermediation or Money Creation, What Do Banks Do? Stephen Marglin, February 26, 2020, Paper, “This is a curious debate on which much seems to turn on “the stroke of a pen.” Do banks create money or are they intermediaries between depositors and borrowers? Marc Lavoie is spot on. Banks create money, and, yes, they do it with the stroke of a pen. This is true even if banks are constrained by reserve requirements and can only “lend out what they have already received in deposits.” Even if the money is out the door before the ink is dry on the loan documents by which it was created. Banks are uniquely able to create money because the loans they make create a means of payment acceptable for discharging “all debts public and private,” just like every piece of paper money issued by the Federal Reserve. And they have privileged access to a pool of funds provided by the banking system.” Link

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Data and code for: Automatic stabilizers in a low-rate environment

Data and code for: Automatic stabilizers in a low-rate environment. Lawrence Summers, February 16, 2020, Dataset, “In a world where monetary policy cannot assume responsibility for stabilization policy, there is a strong need for fiscal policy to address stabilization issues. In this context, we argue for “semi-automatic stabilizers” , aimed at reducing unemployment slumps rather than output recessions. We show that the hole left by the limits on monetary policy implies a large role for fiscal policy in general, and for semi-automatic stabilizers in particular. Finally, we argue that the design of stabilizers, whether they focus on mechanisms that rely primarily on income or on intertemporal substitution effects, depends crucially on the general design of discretionary policy.Link

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