We are in the midst of a slow and anemic economic recovery.
Productivity, which drives any effective period of economic growth, has
stagnated.
There is genuine concern that things will not get much better over the horizon, and could in fact get worse.
There are many causes of this malaise; some explainable, some not.
One of the core problems is that we have paid too much attention to monetary policy and not enough to fiscal policy.
The central banks have held center stage since the banking meltdown here, the sovereign debt crisis in Europe, and Japan’s economic stall.
During the period immediately following the financial crisis, the U.S. Federal Reserve actually performed well. The recession would have turned into a catastrophic event without the Fed’s aggressive intervention.
But like the uncle who came to dinner and then just stayed around for the next meal, the Fed has remained at the center of the effort to rebalance and reinvigorate our economy for too long.
This same case can be made in spades for the Bank of Japan and the European Central Bank.
The whole focus has been on the way these entities can manipulate interest rates and print money, supposedly paving the way for economic growth.
http://thehill.com/opinion/judd-gregg/298880-judd-gregg-time-for-fiscal-policy-to-drive-growth
There is genuine concern that things will not get much better over the horizon, and could in fact get worse.
There are many causes of this malaise; some explainable, some not.
One of the core problems is that we have paid too much attention to monetary policy and not enough to fiscal policy.
The central banks have held center stage since the banking meltdown here, the sovereign debt crisis in Europe, and Japan’s economic stall.
During the period immediately following the financial crisis, the U.S. Federal Reserve actually performed well. The recession would have turned into a catastrophic event without the Fed’s aggressive intervention.
But like the uncle who came to dinner and then just stayed around for the next meal, the Fed has remained at the center of the effort to rebalance and reinvigorate our economy for too long.
This same case can be made in spades for the Bank of Japan and the European Central Bank.
The whole focus has been on the way these entities can manipulate interest rates and print money, supposedly paving the way for economic growth.
http://thehill.com/opinion/judd-gregg/298880-judd-gregg-time-for-fiscal-policy-to-drive-growth
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