Zero interest policy and the new abnormal : a critique /
This book is the first comprehensive critique of the widespread and dominant political economy in which central banks set interest rates to zero and engage in unorthodox monetary policy (quantitative easing) while ministries of finance run large budget deficits and accumulate debt.
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| Format: | eBook |
| Language: | English |
| Published: |
Oxford, United Kingdom :
Oxford University Press,
[2022]
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| Edition: | First edition. |
| Subjects: | |
| Online Access: | Connect to the full text of this electronic book |
Table of Contents:
- Cover
- Titlepage
- Copyright
- Preface
- Contents
- List of Figures
- 1 The New Abnormal
- Liquidity Trap
- Existential Risk
- Academic Macroeconomics in Crisis
- Globalism v Parochialism and other Dichotomies
- Covid-19 Pandemic
- Behavioral Macroeconomics
- Theory in Brief
- The Chapters Ahead
- Synopsis
- 2 Where Macroeconomic Theory went wrong
- Wicksell's Cumulative Process
- ``Natural'' Rate of Interest
- The Natural Rate of Interest in the Neoclassical Growth Model
- The Dynamics of the Natural Rate of Interest
- Accumulation with Money
- The New Keynesian Model
- Taylor Rule
- The Missing Link in New Keynesian Theory
- Filtered Output Gaps
- Output Gap and Natural Rate Theory
- Walras' Law
- Existential Risk
- Quantitative Easing
- Balance Sheets
- Money and Credit
- The Bond Market
- Quanatitive Easing under Zero Interest Policy
- Krugman's Zero Interest Policy Model
- Normative Economics of Quantitative Easing
- Fiscal Policy
- Accounting Identities
- Unpleasant Monetary Arithmetic
- Unpleasant Monetary Arithmetic and Zero Interest Policy
- Exchange Rates and Interest Rates
- Relative and Absolute Interest Parity
- The Dynamic Stochastic General Equilibrium Movement
- Synopsis
- 3 Postmodern Macroeconomics
- The Postmodern Revolt against Science
- Econometric Orthodoxy
- The Revolution of 1980
- Calibration, Bayesian Priors, and Indirect Estimation
- A Critique of the Lucas Critique
- Indirect Inference
- Return to Econometric Orthodoxy
- Integrating the Secular and the Cyclical
- Synopsis
- 4 The Natural Rate of Interest
- Literature
- Theory
- From Theory to Data
- National Income Accounting
- Measurement Error
- Empirical Illustration
- Corporation Tax
- Marginal Products of Capital
- United States
- Japan
- Germany
- United Kingdom
- France
- Sweden
- Australia
- Israel
- Overview
- Synopsis
- 5 Descent into Zero Interest Policy and the New Abnormal
- Central Bank Policy Rates
- Israel
- The Effect of Zero Interest Policy on Long-term Interest Rates
- United States
- Japan
- Countries with Index-linked Bond Markets
- United States
- United Kingdom
- Israel
- Countries without Index-linked Bond Markets
- Quantitative Easing
- Corporate Default Risk
- Fiscal Policy
- Kinetic Inflation
- Synopsis
- 6 Fertility Decline in the New Abnormal?
- The Relation between Total and Completed Fertility
- Demographic Theory
- Quality-Quantity Theory
- Basic Model
- Parents as Stakeholders
- Population Ageing
- Empirical Analysis
- Discussion
- Synopsis
- 7 Socioeconomic Consequences of the New Abnormal
- Pensions
- Pension Income and Interest
- Japan
- Economic Inequality
- Variance
- Gini Inequality
- Are Labor Shares and Income Inequality Correlated?
- House Prices
- Insurance
- Synopsis
- 8 The Japanese Crystal Ball?
- The Japanese Economic Miracle
- The Lost Decade and a Half
- The New Abnormal: Abenomics
- The Future