Suchergebnisse

The 2008 financial crisis challenged many orthodox assumptions in finance and economics, including the proper role and accountability of central banks. The U.S. Federal Reserve, commonly known as the Fed, is the world's most powerful central bank.

The conventional wisdom has held that economic policy was a great success under Bill Clinton in the 1990s and a failure ever since. Hillary Clinton has made the comparison often, promising to end "the seven year detour" and "attack poverty by making the economy work again." In January, in response to the president's State of the Union Address, Barack Obama stated that it was "George Bush's Washington that let the banks and financial institutions run amok and take our economy down this dangerous road."

Examines how President Bill Clinton's economic policies generated a bubble economy (including stock market & housing bubbles) rooted in the Washington Consensus & are at the heart of current US economic woes. Attention is given to Clinton-era deregulation of the financial marketplace, the Federal Reserve's use of interest rates as its key policy tool, the replacement of command-&-control regulation with risk-based regulation under Clinton, & the impact of the Gramm-Leach-Bliley Financial Services Modernization Act of 1999. How the Bush administration inherited the bubble economy from Clinton is outlined, & the hypocrisies laid bare by the current market panic are identified. This Washington Consensus crisis reveals the necessity for the kind of prudent government financial regulation & reined in Federal Reserve seen in the post-WWII years. Adapted from the source document.

ABSTRACT. The authors of this article review the late E. Lynn Turgeon's contributions to economics, including his studies of the Soviet economy, use of qualitative and demographic analyses, his Keynesian critique of U.S. economic performance, and his critique of international financial markets. Turgeon's comparative approach led to unique insights about the challenges that confronted planned economies, including the differential impact of military spending on the demand‐constrained economy of the United States and the supply‐constrained economy of the Soviet Union. His study of the Soviet and planned economies also informed his analysis of the U.S. economy and international adjustment mechanisms. Turgeon argued for expansionary fiscal and neutral monetary policies, prudential restrictions on portfolio capital flows, and increased foreign direct investment and foreign assistance to shift the burdens of adjustment from deficit to surplus countries. Throughout his career, Turgeon measured economic policies by their effects on real people, including impacts on employment, the environment, living standards, and distributions of income and wealth.