Policies to improve competitiveness and development
Topic 6 continues out look at policies. Since the 2008 financial crisis the US economy has struggled to recover. It has been characterised by weak growth and stubbornly high unemploment rates. Popular discontent with the actions of government, the financial sector and rising inequality lead to wide-spread protests in the form if the Occupy movement. In the run-up to the presidential election in November the debate is about whether it is possible to do more. On the fiscal side the Federal government’s hands are tied – there is a fiscal cliff coming! On the monetary policy side QE1, QE2 and LTRO have been tried. Recently Noah Smith asked:
What is the best historical example of monetary policy successfully counteracting a demand shock?—
Noah Smith (@Noahpinion) August 25, 2012
The isues are also discussed in these posts:
Your assignment is two-fold:
- Prepare for class by having a look at the background reading.
- In each group one person has to write a post for this blog. But this is no regular post. I want you to curate some resources describing the two sides of the debate: Can the Fed do more? You have to find 10 articles / blog posts arguing in favour of expansionary monetary policy and 10 articles / blog posts against. Then you put them together using Scoop.it or Clipboard or Glogster, add brief notes of your own, and publish the link to that in a post (or even embed it) on this blog.