Description
Book SynopsisSixteen countries across the world — including the United States and many European nations — have fallen into economic crises since the late 1990s. In The Limits of Fiscal, Monetary, and Trade Policies: International Comparisons and Solutions, Jonathan E Leightner convincingly argues that the fundamental cause of the global malaise is a surplus of savings. He provides compelling evidence (via statistical estimates) that fiscal, monetary, and trade policies cannot solve the resulting problems since their effectiveness has plummeted. Leightner also shows that the solution to the current global economic woes is a “consumption driven growth model” (which China advocates but has yet to fully implement) because when there is insufficient consumption, excess savings will remain idle, seek a return from rent or deception, or fund speculative bubbles.
Table of ContentsThe Core Problem Underlying the Current Crisis; Other Hypotheses About the Crisis; How the Crisis Began, Is Continuing to Unfold, and Is Being Addressed in the USA, the UK, Japan, China, Brazil, Russia, Cyprus, Greece, Ireland, Italy, Portugal, and Spain; The Declining Effectiveness of Monetary policy; The Declining Effectiveness of Fiscal Policy; The Declining Effectiveness of Exchange Rate and Trade Policy; China's Role and Approach to the Crisis; Conclusion; Technical Appendix on the Statistical Technique Used.
