Public Libraries of Suffolk County, New York

Prosperity for all, how to prevent financial crises, Roger E.A. Farmer

eng

Includes bibliographical references and index

illustrations

index present

non fiction

Prosperity for all

bibliography

Roger E.A. Farmer

how to prevent financial crises

" In the aftermath of the 2008 financial crisis, economists around the world have advanced theories to explain the persistence of high unemployment and low growth rates. According to Roger E. A. Farmer, these theories can be divided into two leading schools of thought: the ideas of pre-Keynesian scholars who blame the recession on bad economic policy, and the suggestions of "New Keynesian" scholars who propose standard modifications to select assumptions of Keynes' General Theory. But Farmer eschews boththese schools of thought, arguing instead that in order to mitigate current financial crises-and prevent future ones-macroeconomic theory must become attuned to present-day conditions. Governments need to intervene in asset markets in a manner similar tothe recent behavior of central banks, and principal actors in the international economy need to pursue financial stability. The primary mechanism for securing such stability would be for sovereign nations to create sovereign wealth funds backed by the present value of future tax revenues. These funds would function along the lines in which exchange-traded funds currently operate, and in time, they would become the backbone for stabilizing financial markets. Written in clear, accessible language by a prominent macroeconomic theorist, Prosperity for All proposes a paradigm shift and policy changes that could successfully raise employment rates, keep inflation at bay, and stimulate growth. "--, Provided by publisher"A discussion of the global economy"--, Provided by publisher

Machine generated contents note: -- Chapter 1: Prosperity for All -- Chapter 2: Keynes Betrayed -- Chapter 3: The Demise of the Natural Rate Hypothesis -- Chapter 4: Let's Stop Pretending that Unemployment is Voluntary -- Chapter 5: Five Problems with NewKeynesian Economics -- Chapter 6: Why Unemployment Persists -- Chapter 7: Wall Street and Main Street -- Chapter 8: The New Keynesian Model Explained -- Chapter 9: The Farmer Monetary Model Explained -- Chapter 10: Keynesian Economics without the Consumption Function -- Chapter 11: How to Prevent Financial Crises