Given the persistent weakness in the U.S. economy, a re-evaluation of fiscal policy theory is warranted.
Mr Clarke deftly describes the twisting contours of Keynes's impact on both economic policy and economic theory.
This is problematic because not only does sound policy demand accurate theory, but he will never win over nay sayers if his argument is fundamentally the same as theirs.
In theory this policy of buying and cancelling some of the debt would reduce Greece's indebtedness, because the market price of its bonds is a fraction of the amount originally borrowed: if the EFSF paid 50m euros for Greek bonds with a face value of 100m euros, and agreed that Greece should have an obligation to replay only the 50m euros, that would reduce Greece's indebtedness by 50m euros.
Is it a good idea to formulate global policy based on an untestable theory?
By the late 1980s, though, the balance of his interests had shifted away from theory and towards policy work.
In theory, looser monetary policy should push down the the dollar, so boosting exports.
That policy baldly contradicted the electronic interference theory, except insofar as 500 passenger devices might have a cumulative effect.
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There's a reason, it turns out, why the monetary policy target most loved, in theory, by academic economists for the best part of 40 years has never made it to the point of actually being used.
The suit on Myfortic is a significant expansion of the Anti-Kickback Statute that is inconsistent with law and policy in this area and the theory in this case threatens to undermine pharmaceutical company discounting practices that benefit both consumers and payers, including the government.
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The initial association of the natural-rate theory and conservative ideas on policy was exaggerated in another way.
Fifteen years ago, when Lord Lawson delivered the Mais lecture, he set out the theory on which his economic policy was based.
Theory must always be serviceable for policy, even if its echoes went beyond practical requirements.
Tony Blair had decided some time ago, the theory goes, that his cornerstone policy of modernising the public services was going to require job losses in the fire service.
But to the extent that 1990s economic theory takes us back to 1960s antitrust policy, it will do little more than protect inefficient firms and enrich lawyers and consultants at the public's expense.
In theory, a government could use monetary and fiscal policy to hold back inflation.
The intuition behind the theory is nonetheless compelling, which makes the scarcity of policy prescriptions frustrating.
In theory, the mayor will have considerable say over transport policy.
Another reason for hesitation is that the theory that revaluing the yuan will allow Beijing to tighten its monetary policy is too simplistic.
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What economic theory tells us is to look at the entire projected path of policy, measure its fiscal gap, and decide on the basis of the size of its fiscal gap whether the policy is sustainable.
Professor Neumark summarized some of their findings in a column published in the Wall Street Journal last summer, and he discusses the basic economic theory (and the evidence) in a short, accessible 2006 Policy Study for the Show-Me Institute.
He has published over 70 theoretical empirical and policy papers on international macroeconomic issues and co-authored the books Political Cycles: Theory and Evidence and Bailouts or Bail-ins?
The various laws and regulations have all changed over time to incorporate modern financial theory, including the idea that investing for income is the inappropriate investment policy.
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That problem, in theory, is now being addressed, with the creation of the new Financial Policy Committee at the Bank for example.
In addition to the study of terrorism and political violence, his research interests lie at the intersection of international relations, international law, political theory, and ethics, with particular concentrations on the implications for United States foreign policy and African states as well as religion and global politics.
Even if the theory of global warming is wrong, we will be doing the right thing in terms of economic policy and environmental policy.
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In theory, if a country cannot cut interest rates, because of monetary union, it should use fiscal policy to support its economy.
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