... of primary fiscal deficits, higher real interest rates, and stock-flow adjustments related to the banking and currency crisis, while unfavorable interest-rate growth differentials contributed to the debt accumulation of the Great Depression during the 1930s. For large debt reductions since 1880, the primary...

... Demographic decline Fiscal policy “Rethinking Macro Policy” conference of 2015 Women in labor force Asia Economic growth GDP Technology Credit surface Inflation Interest rates Sovereign bonds True real interest rate Markets Risk Tail risks Government Inequality Taxation Deleveraging...

... makes a case for pro-productive investment policy as way to absorb global savings in a satisfactory way, while also warning about the risks of using monetary policy to achieve negative real interest rates. Debt supercycle model Europe Index bond yields Interest rates Japan Savings glut view...

... that an increase in its borrowing in the world capital market pushes up the world interest rate, the neutrality breaks down. In the large open economy case, the higher world interest rate, in lowering the after-tax wage to unearned income ratio, reduces permanently the number of hours supplied. The chapter also...

...This chapter examines the cross-country and temporal patterns of the interest-rate growth differential (IRGD), an essential variable in the dynamics of the debt ratio; that is, the ratio of government debt to GDP. Essentially, the IRGD is the difference between the interest rate paid on government...

... is tempered by relatively benign assumptions regarding interest rates and growth trends. In general, all countries face important risks that could derail debt reduction, including policy implementation challenges, greater macroeconomic uncertainty, and the possibility that large contingent liabilities...

...This chapter explores the history of inflation-indexed bond markets in the United States and the United Kingdom. It documents a massive decline in long-term real interest rates from the 1990s until 2008, followed by a sudden spike during the financial crisis of 2008. Breakeven inflation rates...

... and the exchange rate, the relationship between the nominal exchange rate and the real exchange rate, how financial integration with the rest of the world affected the Japanese economy, the effect of interest rates on consumption, the change in the Japanese employment system after 1997, the rise of part-time...

... prices in the context of real interest rates in the mid-1980s and the concurrent uncertainty over productivity. Drawing on data on consumption, the chapter considers the impact of the homogeneous and heterogeneous beliefs of investors on stock and land prices as well as aggregate consumption relative...

...This chapter examines the effect of interest rates on consumption in Japan and explains why monetary transmission via Japan’s household sector is significantly different from that operating in the United States and other industrial countries. It presents an empirical analysis of Japanese...

... the role of interest rates and other financial variables in the Finnish real economy, and to explain the huge fluctuations in private investment and consumption behavior. Financial crises Deregulation of financial institutions Economic crisis of 1990s Finland Oil crises 1970s Soviet Union components...

.... This chapter examines the interplay between monetary policy and the exchange rate during the period of Japan’s bubble economy and subsequent economic stagnation, and explains how monetary movements affect both the real exchange rate and the nominal exchange rate. It first analyzes Japan’s policy interest rates...

... some conundrums of how to control inflation while keeping growth up. Cash reserve ratio Eurozone Expert expertise Inflation Interest rates Liquidity Monetary policy Operation Twist Experiment Fiscal deficit Germany Growth Japan Policy puzzle Supply Sushma Central bank Hungary Radford...

...This chapter provides an overview of the regulation of benchmarks and benchmark products. It begins with a discussion of the types of benchmarks used in financial markets, such as stock, debt and other asset-based indexes and interest rate indexes, such as LIBOR. It continues with a discussion...

... of unsustainable debt. The simulations show that fiscal stimulus is significantly more effective in boosting economic output when the higher real interest rates that it can generate are offset by other policy measures. Automatic stabilizers expansionary fiscal policy monetary policy Global Integrated Monetary...

...This chapter discusses the 2008 crisis and its impact on the U.S. economy. First, the chapter takes the task of diagnosing the causes that brought about this crisis. Some authors give due cause to government actions, where the keeping of low interest rates which increased expansion of homeownership...

... it? What prolonged it? What made it so severe during the fall of 2008?” The chapter first takes on the view that this financial crisis was precipitated by monetary excesses that took the form of low interest rates, which in turn contributed to excessive risk taking in search for higher yields. The Taylor...

...This chapter reviews evidence on the benefits and costs of currency boards. It first considers the behavior of inflation, money growth, and interest rates under various exchange rate regimes. It then turns to the “real” side of the economy—exports, investment, and output growth. Next it examines...