The Holy Grail of Macroeconomics

The revised edition of this highly acclaimed work presents crucial lessons from Japan's recession that could aid the US and other economies as they struggle to recover from the current financial crisis.

Author: Richard C. Koo

Publisher: John Wiley & Sons

ISBN: 1118179188

Category: Business & Economics

Page: 256

View: 815

The revised edition of this highly acclaimed work presents cruciallessons from Japan's recession that could aid the US and othereconomies as they struggle to recover from the current financialcrisis. This book is about Japan's 15-year long recession and how itaffected current theoretical thinking about its causes and cures.It has a detailed explanation on what happened to Japan, but thediscoveries made are so far-reaching that a large portion ofeconomics literature will have to be modified to accommodateanother half to the macroeconomic spectrum of possibilities thatconventional theorists have overlooked. The author developed the idea of yin and yang business cycleswhere the conventional world of profit maximization is the yang andthe world of balance sheet recession, where companies areminimizing debt, is the yin. Once so divided, many varied theoriesdeveloped in macro economics since the 1930s can be nicelycategorized into a single comprehensive theory- The Holy Grailof Macro Economics

The Escape from Balance Sheet Recession and the QE Trap

In this book, the author highlights the recent developments in the global economy and contends that the U.S. policy makers who understood the dangers of balance sheet recession steered the country away from the fiscal cliff, which is why it ...

Author: Richard C. Koo

Publisher: John Wiley & Sons

ISBN: 1119028124

Category: Business & Economics

Page: 320

View: 276

Compare global experiences during the balance sheet recession and find out what is needed for a full recovery The Escape from Balance Sheet Recession and the QE Trap details the many hidden dangers remaining as the world slowly recovers from the balance sheet recession of 2008. Author and leading economist Richard Koo explains the unique political and economic pitfalls that stand in the way of recovery from this rare type of recession that was largely overlooked by economists. Koo anticipated the current predicament in the West long before others and issued warnings in his previous books: Balance Sheet Recession and The Holy Grail of Macroeconomics. This new book illustrates how history is repeating itself in Europe while the United States, which learnt from the Japanese experience, is doing better by avoiding the fiscal cliff. However, because of the liberal dosage of quantitative easing already implemented, the United States, the United Kingdom, and Japan may face a treacherous path to normalcy in what Koo calls the QE Trap. He argues that it is necessary to understand balance sheet recession in order to resolve the Eurozone crisis, particularly the competitiveness problems. Koo issues warnings against those who are too ready to argue for structural reforms when the problems are actually with balance sheets. He re-examines Japan's two decades of experiences with this rare recession and offers an insider view on the Abenomics. On China, readers will gain a very different historical perspective as Koo argues that western commentators have forgotten their own history when they talk about the re-balancing of the Chinese economy. Learn from Japan which experienced the same predicament afflicting the West fifteen years earlier Discover how unwinding of quantitative easing will affect the United States, the United Kingdom, Japan, as well as the emerging world Examine solutions to the Eurozone problems caused by two balance sheet recessions eight years apart Gain insight into China's problems from the West's own experiences with urbanisation Koo, who developed the concept of balance sheet recession based on Japan's experience, took the revolution in macroeconomics started by John Maynard Keynes in 1936 to a new height. The Escape from Balance Sheet Recession and the QE Trap offers the world cure for balance sheet recession.

Pursued Economy

I sincerely hope that the lessons contained in this book are put to good use in fighting similar recessions elsewhere, including the U.S. subprime crisis.” —Yasushi Mieno, Former Governor, Bank of Japan BALANCE SHEET RECESSION: ...

Author: Richard C. Koo

Publisher: John Wiley & Sons

ISBN: 1119984270

Category: Business & Economics

Page: 512

View: 211

In Pursued Economy: Understanding and Overcoming the Challenging New Realities for Advanced Economies, celebrated economist and thought leader Richard C. Koo dives deep into the failure of traditional economic solutions to address the economic and social problems of post-Great Recession and post-pandemic economies. Starting with the original concepts of balance sheet recessions and global competition for capital, the author explains why the Great Recession lasted for so long and why well-intentioned policies that worked so well in the past are no longer working today. Readers will discover that advanced economies moved from what the author calls the "golden era" to the "pursued era" of economic development long ago, but the policy debate in these countries continues to be informed by golden era assumptions that are no longer relevant but are still taught in universities. That mismatch has led to an over-reliance on monetary policy and an under-reliance on fiscal policy that are distorting economies and worsening inequality in a profoundly transformed world. With many real-world examples from the author's extensive involvement in the policy debate on economic, banking and trade issues in several countries, including the U.S., the book describes the correct policy mix in the pursued era as distinct from that in the golden era. It also explains the challenges central banks face in fighting inflation after a decade of over-reliance on monetary policy that flooded the world’s economies with unprecedented liquidity. Instead of simply assuming the existence of "trend growth rates", this book tackles the issue of economic growth head-on so as to elucidate the symmetry between the drivers of growth and the drivers of recession. It also argues that the fundamental disconnect between free trade and free capital movements must be addressed in order to maximize the gains from globalization while minimizing its costs. Written in simple language and with a great sense of urgency, Pursued Economy should be of interest to anyone who is concerned about the global economy, financial stability and geopolitics.

Bonfire of Illusions

... International Socialism, 2.121 (2009), and B. Eichengreen and K. H. O'Rourke, “A Tale of Two Depressions', 4 June 2009, www.voxeu.org. m R. Koo, The Holy Grail of Macroeconomics: Lessons from Japan's Great Recession (Singapore, ...

Author: Alex Callinicos

Publisher: John Wiley & Sons

ISBN: 074565939X

Category: Political Science

Page: 144

View: 397

Something dramatic happened in the late summer and autumn of 2008. The post-Cold War world came to an abrupt end. This was the result of two conjoined crises. First, in its brief war with Georgia in August 2008, Russia asserted its military power to halt the expansion of NATO to its very borders. Secondly, on 15 September 2008 the Wall Street investment bank Lehman Brothers collapsed. This precipitated a severe financial crash and helped to push the world economy into the worst slump since the 1930s. Both crises marked a severe setback for the global power of the United States, which had driven NATO expansion and forced through the liberalization of financial markets. More broadly they challenged the consensus that had reigned since the collapse of the Soviet bloc in 1989 that a US-orchestrated liberal capitalist order could offer the world peace and prosperity. Already badly damaged by the Iraq debacle, this consensus has now suffered potentially fatal blows. In Bonfire of Illusions Alex Callinicos explores these twin crises. He traces the credit crunch that developed in 2007-8 to a much more protracted crisis of overaccumulation and profitability that has gripped global capitalism since the late 1960s. He also confronts the interaction between economic and geopolitical events, highlighting the new assertiveness of nation-states and analysing the tense, complex relationship of interdependence and conflict that binds together the US and China. Finally, in response to the revelation that the market is not the solution to the world's problems, Callinicos reviews the prospects for alternatives to capitalism.

Foundations of Modern Macroeconomics

Holy. Grail. of. macroeconomics. There exists a fundamental tension in the labour market theories that are based on perfectly competitive behaviour and flexible wages. From microeconometric research we know that the labour supply curve ...

Author: Ben J. Heijdra

Publisher: Oxford University Press

ISBN: 0198784139

Category: Business & Economics

Page: 944

View: 840

The study of macroeconomics can seem a daunting project. The field is complex and sometimes poorly defined and there are a variety of competing approaches. It is easy for the senior bachelor and starting master student to get lost in the forest of macroeconomics and the mathematics it uses extensively. Foundations of Modern Macroeconomics is a guide book for the interested and ambitious student. Non-partisan in its approach, it deals with all the major topics, summarising the important approaches and providing the reader with a coherent angle on all aspects of macroeconomic thought. Each chapter deals with a separate area of macroeconomics, and each contains a summary section of key points and a further reading list. Using nothing more than undergraduate mathematical skills, it takes the student from basic IS-LM style macro models to the state of the art literature on Dynamic Stochastic General Equilibrium, explaining the mathematical tricks used where they are first introduced. Fully updated and substantially revised, this third edition of Foundations of Modern Macroeconomics now includes brand new chapters covering highly topical subjects such as dynamic programming, competitive risk sharing equilibria and the New Keynesian DSGE approach.

A Macroeconomics Reader

KEYNESIAN ECONOMICS AND THE KEYNESIAN REVOLUTION The birth of modern macroeconomics can be traced back to the 1930s, ... for the global economic collapse during the early 1930s remains the 'Holy Grail' of macroeconomics (seeC.

Author: Brian Snowdon

Publisher: Routledge

ISBN: 113472909X

Category: Business & Economics

Page: 688

View: 600

A Macroeconomics Reader brings together a collection of key readings in modern macroeconomics. Each article has been carefully chosen to provide the reader with accessible, non-technical, and reflective papers which critically assess important areas and current controversies within modern macroeconomics. The book is divided into six parts, each with a separate introduction highlighting the relevance of the ensuing articles. The areas covered include: Keynes's General Theory, Keynesian economics and the Keynesian revolution; monetarism; rational expectations and new classical macroeconomics; real business cycle approaches: New Keynesian economics: economic growth. This book will be an essential guide for students and lecturers in the field of macroeconomics as well as those interested in the history of economic thought.

A Modern Guide to Keynesian Macroeconomics and Economic Policies

Keister, T., A. Martin and J. McAndrews (2008), 'Divorcing money from monetary policy', FRBNY Economic Policy Review, September, 41–53. Koo, R.C. (2009), The Holy Grail of Macroeconomics: Lessons from Japan's Great Recession, ...

Author: Eckhard Hein

Publisher: Edward Elgar Publishing

ISBN: 0857931822

Category: Business & Economics

Page: 392

View: 154

This well-documented book will prove to be the essential guide for researchers and graduate students in macroeconomics and political economy. It will also prove inspiring to a wider audience interested in modern Keynesian macroeconomics.

Essays on the Great Depression

TO UNDERSTAND THE GREAT DEPRESSION is the Holy Grail of macro- economics. Not only did the Depression give birth to macroeconomics as a distinct field of study, but also—to an extent that is not always fully appre- ciated—the experience ...

Author: Ben S. Bernanke

Publisher: Princeton University Press

ISBN: 1400820278

Category: Business & Economics

Page: 320

View: 607

Few periods in history compare to the Great Depression. Stock market crashes, bread lines, bank runs, and wild currency speculation were worldwide phenomena--all occurring with war looming in the background. This period has provided economists with a marvelous laboratory for studying the links between economic policies and institutions and economic performance. Here, Ben Bernanke has gathered together his essays on why the Great Depression was so devastating. This broad view shows us that while the Great Depression was an unparalleled disaster, some economies pulled up faster than others, and some made an opportunity out of it. By comparing and contrasting the economic strategies and statistics of the world's nations as they struggled to survive economically, the fundamental lessons of macroeconomics stand out in bold relief against a background of immense human suffering. The essays in this volume present a uniquely coherent view of the economic causes and worldwide propagation of the depression.

Frontiers of Heterodox Macroeconomics

Federal Reserve Bank of New York Current Issues in Economics and Finance, 15(8), 1–10. Keynes, J. M. (1930). A Treatise on Money. London: Macmillan. Koo, R. C. (2009). The Holy Grail of Macroeconomics: Lessons from Japan's Great ...

Author: Philip Arestis

Publisher: Springer Nature

ISBN: 3030239292

Category: Political Science

Page: 378

View: 939

In the past few decades, and intensified since the global financial crisis of August 2007, heterodox macroeconomics has developed apace and its scope has broadened in a number of directions. The purpose of this volume is to review the ‘state of the art’ in heterodox macroeconomics, its strengths and weaknesses and future directions. Heterodox macroeconomics has broadened its scope through gender macroeconomics, ecological macroeconomics and further incorporated income distribution and inequality into macroeconomics analysis. New macroeconomic models, particularly stock-flow consistent modelling has become a widely used mode of analysis. Money and finance, monetary policy and fiscal policy as well as other policies have been discussed widely. The focus of this edited collection is on all of these issues, with chapters focusing on inflation, ecological sustainability and regulatory policy.

Modern Monetary Theory and European Macroeconomics

Knapp, Georg Friedrich (1905), Staatliche Theorie des Geldes. München und Leipzig: von Duncker & Humblot. Koo, Richard (2008), The Holy Grail of Macroeconomics: Lessons from Japan's Great Recession. Singapore: Wiley.

Author: Dirk H. Ehnts

Publisher: Taylor & Francis

ISBN: 1317224809

Category: Business & Economics

Page: 208

View: 921

This book provides a new methodological approach to money and macroeconomics. Realizing that the abstract equilibrium models lacked descriptions of fundamental issues of a modern monetary economy, the focus of this book lies on the (stylized) balance sheets of the main actors. Money, after all, is born on the balance sheets of the central bank or commercial bank. While households and firms hold accounts at banks with deposits, banks hold an account at the central bank where deposits are called reserves. The book aims to explain how the two monetary circuits – central bank deposits and bank deposits – are intertwined. It is also shown how government spending injects money into the economy. Modern Monetary Theory and European Macroeconomics covers both the general case and then the Eurozone specifically. A very simple macroeconomic model follows which explains the major accounting identities of macroeconomics. Using this new methodology, the Eurozone crisis is examined from a fresh perspective. It turns out that not government debt but the stagnation of private sector debt was the major economic problem and that cuts in government spending worsened the economic situation. The concluding chapters discuss what a solution to the current problems of the Eurozone must look like, with scenarios that examine a future with and without a euro. This book provides a detailed balance sheet view of monetary and fiscal operations, with a focus on the Eurozone economy. Students, policy-makers and financial market actors will learn to assess the institutional processes that underpin a modern monetary economy, in times of boom and in times of bust.