Sixteen 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.
Contents:IntroductionBanking PolicyMonetary PolicyFiscal PolicyTrade PolicyCurrency PolicyChina and Export Versus Consumption-Driven GrowthIncome DistributionConclusionAppendix 1: Reiterative Truncated Projected Least SquaresAppendix 2: Additional Figures for Chapter 4Appendix 3: Additional Figures for Chapter 5Appendix 4: Additional Information for Chapter 8Appendix 5: Additional Tables for Chapter 9
Readership: Students and researchers of economics, political science, and international affairs; government officials; and officials of international organisations interested in analyses of the current global economic climate.
Key Features:Not many books on the current economic crisis address the root cause of the crisis: insufficient consumptionThis book uses Reiterative Truncated Projected Least Squares (RTPLS, a statistical technique that captures the influence of omitted variables) to gather empirical evidence that current government measures are not effectiveThis book's wide scope of case-study countries will appeal to readers who want an international analysis of the post-2008 global economic climate