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Tag Archives: consumption
The Austerity Policies: Boon or Disaster?
Ups and downs in implementing the austerity policies The recent shift in the minds from accepting unequivocally the austerity policy to almost denying its rationale is amazing. Even IMF has softened its position on the austerity requirements. It is understandable, … Continue reading
Interest Rates: Avoiding Oversimplifications
My earlier post on interest rates fueled a hot discussion on the LinkedIn, and I enjoyed all responses so much that I cannot but continue musing over this not only hot but very important in terms of economic policy topic. … Continue reading
Austerity Policies Must Be Aggregate-Demand-Neutral. In the Real Life They Are Not. Why?
Is there a direct connection between cutting costs policies and the anemic near-recession economic growth in the US and Europe? If the economy is demand-driven, the supposed connection looks obvious. Indeed, cost-cutting measures slash demand with dire consequences for employment … Continue reading
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