KillerApps Macro: Fiscal Policy
Even with short-term interest rates close to zero, the US economy has failed to respond to cheap money because of anemic bank lending.
Economic stimulus might end up stimulating foreign economies more than the domestic economy when the US is so dependent on imports.
Treasury bonds are important instruments in regulating the money supply.
Cash for clunkers and home-buyer tax credit provided huge subsidies for each incremental sale but failed to sustain the car and housing markets.
Even though members of the European Union have no control over their domestic monetary policies, their undisciplined domestic fiscal policies can still wreak great havoc for the financial health of the Union.
Heavily indebted Greece was taken to task by bond investors who demanded higher yield to offset higher default risk and rating agencies who threatened to downgrade its bonds.
Total 6 records
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