These often concern macroeconomic questions such as monetary policy and fiscal discipline, and the means of globalisation, such as free trade and foreign investment.
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Other factors, such as a flawed monetary policy that burdens businesses with unnecessarily high interest rates, hurt Mexico as well.
Mr. Romney made clear that he would be looking for a new Fed chairman, an important signal from a candidate who has made some mistakes such as suggesting that monetary policy should be kept away from Congress.
Indeed, the models that I have built support the use of policy rules, such as the Taylor rule for monetary policy or the automatic stabilizers for fiscal policy, which are the polar opposite of Keynesian discretion.
Something got lost in the transition after 1913, as the Fed started to pile on ersatz first principles of monetary policy, such as the laugh lines above.
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Moreover, the independent movement of global markets, which react to factors such as different domestic monetary and fiscal policy cycles, has historically provided considerable diversification benefits when held in combination with US investments (though correlations tend to converge on 1 in periods of financial crisis).
Most of the risk in Brazil stems from political interference in the economy through a myriad of surprise macro measures such as taxation on investment, to monetary policy related to the foreign exchange rate.
Key monetary policy operations, such as the LTRO, are working directly through their effects on the banking system and are providing support to large numbers of weak banks.
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Zero interest rates have fooled a lot of people, such as the Wall Street Journal editors, into thinking monetary policy is loose.
These concepts are extremely relevant today and would help clear up much of the confusion over such questions as whether the stimulus program worked, whether monetary policy has been successful, whether TARP was a success or a failure.
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While there are a variety of methods and data sources, the results consistently point to significant negative effects of taxes on economic growth even after controlling for various other factors such as government spending, business cycle conditions, and monetary policy.
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If that were to be the case, Mr Greenspan suggested that the authorities might have to go beyond the conventional ways of stimulating the economy through monetary policy and fiscal policy (such as Mr Bush's stimulus package) and also look at further improving America's economic flexibility.
And, for the overheating economies on Europe's periphery, such as Ireland, Portugal and arguably Spain, a looser monetary policy would make it even harder to keep inflation in check.
Speaking on Monday, he said he was also "sceptical" of alternative monetary policy targets to price stability, such as gross domestic product targeting, since any, even temporary, loosening of inflation expectations would "poison" central bank credibility.
It said the Bank of England's Monetary Policy Committee (MPC), which sets interest rates and authorises other monetary boosts, such as QE - which involves pumping money into the economy to boost growth - should look at loosening the purse-strings.
Given such a risk, monetary policy in the rich world, taken as a whole, looks dangerously tight.
It may be that other, temporary forces, such as the lack of private borrowing or the Fed's easy monetary policy, are offsetting any worries about deficits.
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And even reasonable choices such as the rich world's mix of fiscal austerity and loose monetary policy will have an uncomfortable impact on small, open emerging economies, in the form of unwelcome capital inflows.
The Fed should be mandated to follow a price rule conducting monetary policy in accordance with sensitive market prices, such as gold and other commodities, maintaining the purchasing power of the dollar without inflation.
As such, there is still no binding monetary rule, so uncertainty about future policy persists.
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When standard monetary-policy responses reach their limit, fiscal options, such as cutting taxes and increasing public spending, come into play.
This implies such ideas as currency boards, which restrict a government's ability to vary monetary policy, and international agreements which make it difficult to retreat from commitments to more open trade.
ChartObject Federal Funds Target RateAccording to Investopedia, quantitative easing is a government monetary policy occasionally used to increase the money supply by buying securities, such as U.S. Treasury Bonds, in the open market.
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After some disastrous early decisions, such as freezing deposits, and converting loans and deposits from dollars to pesos at different rates, monetary policy was also surprisingly skilful last year.
As the storm gathered during 2008, the Fed aggressively eased monetary policy by using such open market operations (supplemented by discount rate reductions) to drive short-term interest rates to near-zero levels.
The longer-term challenge for the Fed and other central banks is to build a new monetary-policy framework that takes account of recent structural changes in the global economy, such as the integration of China.
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Despite laws set in the early 1990s to give the central bank powers similar to other such institutions, the government has undermined the bank's role in setting monetary policy by using it as a funding vehicle to pay for big-spending projects, stoking inflation.
Countries in the euro area will have to undertake more reforms, such as making their labour markets more flexible, if they are to make the best of life with a single monetary policy.
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Monetary policy would then be guided by the market prices of a basket of inflation sensitive precious commodities such as gold.
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