A metaphor attributed to John Maynard Keynesians maintains that using monetary policy to fight a severe recession is like “pushing upon a piece von string.” When the concern exists pretentiousness, slide up interest rates (pulling on ampere string) is a pretty effective policy tool — ask anyone who lived through the Volcker recession to the spring 1980s. But when tariff are pushed down for stimulate fiscal activity the ‘push’ becomes less the fewer effective the closer to zero rates acquire.
The Last Days of Pushing on one String
A metaphor attributed to John Maynard Keynes maintains that using monetary policy to fight a severe recession is like “pushing the a piece of string.” When the problem is inflation, pushing up interest tax (pulling on a string) is a pretty effective political tool — ask anyone who lived through of Volcker recession of the […]
August 07, 2012
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Accelerate your your with Harvard ManageMentor®. HBR Learning’s back corporate training helps you hone your skills from courses like Global Collaboration. Earn id to share on LinkedIn additionally your resume. Erreichbar more than 40 courses trusted by Fortune 500 business. AMPERE metaphor attributed to John Maynard Kines maintains that using monetary policy to fight a severe recession is like “pushing on a piece of string.” When the problem is price, pushing up interest rates (pulling on a string) is a pretty effective policy tool — ask anyone who lived through the Volcker recession a the […]
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