Glenn Yago and Susanne Trimbath
- Published in print:
- 2003
- Published Online:
- November 2003
- ISBN:
- 9780195149234
- eISBN:
- 9780199871865
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195149238.003.0001
- Subject:
- Economics and Finance, Financial Economics
This short introductory chapter provides a brief analysis of the high‐yield (junk bond) market in the USA in 2001 and 2002, discussing the multitude of influences upon it, including the September 11, ...
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This short introductory chapter provides a brief analysis of the high‐yield (junk bond) market in the USA in 2001 and 2002, discussing the multitude of influences upon it, including the September 11, 2001 terrorist attacks. It notes that any attempt to compare the impact of these attacks with previous historical events will be flawed because the combination of an act of war committed in the USA at the time of a recession has never before occurred. A table is presented that attempts to sort out the positive and negative effects of individual events and circumstances on the market for high‐yield securities, and a summary is given of the immediate damage to the credit markets in September 2001. It is suggested that there is at least anecdotal evidence of large cash positions sitting on the sidelines globally, so that any recovery could be significant.Less
This short introductory chapter provides a brief analysis of the high‐yield (junk bond) market in the USA in 2001 and 2002, discussing the multitude of influences upon it, including the September 11, 2001 terrorist attacks. It notes that any attempt to compare the impact of these attacks with previous historical events will be flawed because the combination of an act of war committed in the USA at the time of a recession has never before occurred. A table is presented that attempts to sort out the positive and negative effects of individual events and circumstances on the market for high‐yield securities, and a summary is given of the immediate damage to the credit markets in September 2001. It is suggested that there is at least anecdotal evidence of large cash positions sitting on the sidelines globally, so that any recovery could be significant.
Katarina Eckerberg
- Published in print:
- 2000
- Published Online:
- November 2003
- ISBN:
- 9780199242016
- eISBN:
- 9780191599736
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199242011.003.0008
- Subject:
- Political Science, Environmental Politics
Assesses efforts of the Swedish government to come to terms with sustainable development. It documents strong governmental engagement with sustainable development despite the significant recession ...
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Assesses efforts of the Swedish government to come to terms with sustainable development. It documents strong governmental engagement with sustainable development despite the significant recession that swept the country in the early 1990s and prompted a considerable rethink of the traditional institutions of the Swedish welfare state. It shows how the social democratic government attempted to integrate the idea of environmental sustainability with the traditional social democratic vision of the Folkhemmet (People's Home).Less
Assesses efforts of the Swedish government to come to terms with sustainable development. It documents strong governmental engagement with sustainable development despite the significant recession that swept the country in the early 1990s and prompted a considerable rethink of the traditional institutions of the Swedish welfare state. It shows how the social democratic government attempted to integrate the idea of environmental sustainability with the traditional social democratic vision of the Folkhemmet (People's Home).
Charles Weathers
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780199241149
- eISBN:
- 9780191598920
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199241147.003.0006
- Subject:
- Political Science, Comparative Politics
Contemporary Japan is perhaps the ultimate product of ‘globalization’ in many respects. Forcibly opened to the world by the Western powers in the 1850s, the country has since focused its energies on ...
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Contemporary Japan is perhaps the ultimate product of ‘globalization’ in many respects. Forcibly opened to the world by the Western powers in the 1850s, the country has since focused its energies on achieving the greatest possible level of economic development. As a result, the union movement historically has been divided between a right wing, which advocates full cooperation with management and a left wing demanding more resources for social needs and programs. While unions on the right have long dominated organized labour's agenda, even these unions agreed by the 1980s that the labour movement had done too little to improve working conditions and living standards. However, the early 1990s saw the onset of a severe recession and ‘globalization’ (alternatively, a new ‘era of super‐competition’), prompting both businesses and the right‐wing unions to seek comprehensive deregulation of employment systems, against the faltering opposition of the left. As Japan shifts from its ‘paradigm’ of an industrial relations rooted in mass production and ‘lifetime employment’ to a more flexible, high tech–based economy, unions are emphasizing new strategies for protecting jobs in their own industries, and the labour movement's influence over general working conditions has been further eroded. Post‐war Japan's second ‘paradigm shift’ suggests that there are important limits to convergence, as unions spurn the social provisions of the EC, and cooperate with business to nurture Asia as an allied production base for Japan. In addition, those who regarded the Japanese employment system during the 1970s and 1980s as a ‘model’ for organizing cooperative industrial relations in industrializing societies have to confront the fact that the model itself is now in flux.Less
Contemporary Japan is perhaps the ultimate product of ‘globalization’ in many respects. Forcibly opened to the world by the Western powers in the 1850s, the country has since focused its energies on achieving the greatest possible level of economic development. As a result, the union movement historically has been divided between a right wing, which advocates full cooperation with management and a left wing demanding more resources for social needs and programs. While unions on the right have long dominated organized labour's agenda, even these unions agreed by the 1980s that the labour movement had done too little to improve working conditions and living standards. However, the early 1990s saw the onset of a severe recession and ‘globalization’ (alternatively, a new ‘era of super‐competition’), prompting both businesses and the right‐wing unions to seek comprehensive deregulation of employment systems, against the faltering opposition of the left. As Japan shifts from its ‘paradigm’ of an industrial relations rooted in mass production and ‘lifetime employment’ to a more flexible, high tech–based economy, unions are emphasizing new strategies for protecting jobs in their own industries, and the labour movement's influence over general working conditions has been further eroded. Post‐war Japan's second ‘paradigm shift’ suggests that there are important limits to convergence, as unions spurn the social provisions of the EC, and cooperate with business to nurture Asia as an allied production base for Japan. In addition, those who regarded the Japanese employment system during the 1970s and 1980s as a ‘model’ for organizing cooperative industrial relations in industrializing societies have to confront the fact that the model itself is now in flux.
Brigitte Granville
- Published in print:
- 2013
- Published Online:
- October 2017
- ISBN:
- 9780691145402
- eISBN:
- 9781400846443
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691145402.003.0008
- Subject:
- Business and Management, Finance, Accounting, and Banking
This chapter considers the possible application of academic research to address the dire predicament of balance sheet recession and chronic stagnation characterizing large parts of the world economy ...
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This chapter considers the possible application of academic research to address the dire predicament of balance sheet recession and chronic stagnation characterizing large parts of the world economy since 2007. Contemporary policymakers have striven to stimulate demand despite huge debt overhangs and without undermining confidence in the future value of money or sustainability of the public finances and debt. However, as the analysis in the book has shown, excess public debt is fraught with future inflation risk. It highlights two characteristics underlying the best thinking about inflation: adaptation and remembering. It then addresses the question of how inflation targeting might be usefully applied to the post-2007 problems of recession and stagnation against a background of excessive indebtedness.Less
This chapter considers the possible application of academic research to address the dire predicament of balance sheet recession and chronic stagnation characterizing large parts of the world economy since 2007. Contemporary policymakers have striven to stimulate demand despite huge debt overhangs and without undermining confidence in the future value of money or sustainability of the public finances and debt. However, as the analysis in the book has shown, excess public debt is fraught with future inflation risk. It highlights two characteristics underlying the best thinking about inflation: adaptation and remembering. It then addresses the question of how inflation targeting might be usefully applied to the post-2007 problems of recession and stagnation against a background of excessive indebtedness.
Josh Bivens
- Published in print:
- 2011
- Published Online:
- August 2016
- ISBN:
- 9780801450150
- eISBN:
- 9780801460654
- Item type:
- book
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801450150.001.0001
- Subject:
- Economics and Finance, Public and Welfare
This book relays a compelling narrative of the U.S. economy's struggle to emerge from the Great Recession of 2008. It explains the causes and impact on working Americans of the most catastrophic ...
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This book relays a compelling narrative of the U.S. economy's struggle to emerge from the Great Recession of 2008. It explains the causes and impact on working Americans of the most catastrophic economic policy failure since the 1920s. Economic growth since the late 1970s has been slow and inequitably distributed, largely as a result of poor policy choices. These choices only got worse in the 2000s, leading to an anemic economic expansion. What growth we did see in the economy was fueled by staggering increases in private-sector debt and a housing bubble that artificially inflated wealth by trillions of dollars. As had been predicted, the bursting of the housing bubble had disastrous consequences for the broader economy, spurring a financial crisis and a rise in joblessness that dwarfed those resulting from any recession since the Great Depression. The fallout from the Great Recession makes it near certain that there will be yet another lost decade of income growth for typical families, whose incomes had not been boosted by the previous decade's sluggish and localized economic expansion. In its broad narrative of how the economy has failed to deliver for most Americans over much of the past three decades, the book also offers compelling graphic evidence on jobs, incomes, wages, and other measures of economic well-being most relevant to low-and middle-income workers. It tracks these trends carefully, giving a lesson in economic history that is readable yet rigorous in its analysis.Less
This book relays a compelling narrative of the U.S. economy's struggle to emerge from the Great Recession of 2008. It explains the causes and impact on working Americans of the most catastrophic economic policy failure since the 1920s. Economic growth since the late 1970s has been slow and inequitably distributed, largely as a result of poor policy choices. These choices only got worse in the 2000s, leading to an anemic economic expansion. What growth we did see in the economy was fueled by staggering increases in private-sector debt and a housing bubble that artificially inflated wealth by trillions of dollars. As had been predicted, the bursting of the housing bubble had disastrous consequences for the broader economy, spurring a financial crisis and a rise in joblessness that dwarfed those resulting from any recession since the Great Depression. The fallout from the Great Recession makes it near certain that there will be yet another lost decade of income growth for typical families, whose incomes had not been boosted by the previous decade's sluggish and localized economic expansion. In its broad narrative of how the economy has failed to deliver for most Americans over much of the past three decades, the book also offers compelling graphic evidence on jobs, incomes, wages, and other measures of economic well-being most relevant to low-and middle-income workers. It tracks these trends carefully, giving a lesson in economic history that is readable yet rigorous in its analysis.
Terry Gourvish
- Published in print:
- 2002
- Published Online:
- September 2007
- ISBN:
- 9780199250059
- eISBN:
- 9780191719516
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199250059.003.0007
- Subject:
- Business and Management, Business History
This chapter discusses the significance of the disposal of the British Railways Board's subsidiary businesses. These include British Transport Hotels, Sealink and the harbours, property portfolio, ...
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This chapter discusses the significance of the disposal of the British Railways Board's subsidiary businesses. These include British Transport Hotels, Sealink and the harbours, property portfolio, and catering and advertising businesses. The sale of assets provided cash to address British Rail's financial problems, particularly during the recession of the early 1980s. In the late 1980s, the disposals contributed to cash resources, thereby assisting in the Board's efforts to reduce PSO while financing investment without additional borrowing.Less
This chapter discusses the significance of the disposal of the British Railways Board's subsidiary businesses. These include British Transport Hotels, Sealink and the harbours, property portfolio, and catering and advertising businesses. The sale of assets provided cash to address British Rail's financial problems, particularly during the recession of the early 1980s. In the late 1980s, the disposals contributed to cash resources, thereby assisting in the Board's efforts to reduce PSO while financing investment without additional borrowing.
Andrea Braides
- Published in print:
- 2002
- Published Online:
- September 2007
- ISBN:
- 9780198507840
- eISBN:
- 9780191709890
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198507840.003.0011
- Subject:
- Mathematics, Applied Mathematics
This chapter introduces the one-dimensional version of problems defined on functions of bounded variations. It is shown that for general energies, the surface and volume terms of the energy can ...
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This chapter introduces the one-dimensional version of problems defined on functions of bounded variations. It is shown that for general energies, the surface and volume terms of the energy can interact, giving some compatibility conditions between the corresponding energy densities expressed through their recession functions. For these energies, relaxation results are given in terms of inf-convolution and convexification formulas that simplify in the case of convex and concave energies. Links with the theory of Structured Deformations are given.Less
This chapter introduces the one-dimensional version of problems defined on functions of bounded variations. It is shown that for general energies, the surface and volume terms of the energy can interact, giving some compatibility conditions between the corresponding energy densities expressed through their recession functions. For these energies, relaxation results are given in terms of inf-convolution and convexification formulas that simplify in the case of convex and concave energies. Links with the theory of Structured Deformations are given.
Christopher Dow
- Published in print:
- 2000
- Published Online:
- November 2003
- ISBN:
- 9780199241231
- eISBN:
- 9780191596179
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199241236.003.0008
- Subject:
- Economics and Finance, Macro- and Monetary Economics
The recession of 1973–75 was the first occasion since the war when total output fell absolutely, and it was followed six years later by the recession of 1979–82, when output again showed an absolute ...
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The recession of 1973–75 was the first occasion since the war when total output fell absolutely, and it was followed six years later by the recession of 1979–82, when output again showed an absolute fall. The question that this book started out to answer in Ch. 1 was why 1973 was so crucial a turning point: to determine that, one has to look at all the major fluctuations of the economy since 1920, although the recession of 1973–75 and the one that followed in 1979–82 retain a central interest. Each of these two recessions coincided with one of the vast jumps in the world price of oil, known as OPECs I and II, and it is argued that these played a large role in their genesis; although in each case there were also other causes; these two recessions therefore called here the OPEC recessions––there are some important differences between them but also important similarities, and they were both very different from the major recessions that came before the war and the next recession. They are therefore discussed together in this chapter, which takes the story to 1982––the year when the economy can be considered to have emerged from the second of the two recessions. Section 8.1 discusses the background issues––the political developments and the origin of oil price shocks with reference to the UK, Sect. 8.2 seeks to explain the fluctuations of UK demand and output in the period, starting with the 1972 boom––which is seen as one cause of the recession that followed, and Sect. 8.3 considers the general lessons to be derived from the decade; Appendix A8 presents an econometric analysis of the inflationary surges of the 1970s.Less
The recession of 1973–75 was the first occasion since the war when total output fell absolutely, and it was followed six years later by the recession of 1979–82, when output again showed an absolute fall. The question that this book started out to answer in Ch. 1 was why 1973 was so crucial a turning point: to determine that, one has to look at all the major fluctuations of the economy since 1920, although the recession of 1973–75 and the one that followed in 1979–82 retain a central interest. Each of these two recessions coincided with one of the vast jumps in the world price of oil, known as OPECs I and II, and it is argued that these played a large role in their genesis; although in each case there were also other causes; these two recessions therefore called here the OPEC recessions––there are some important differences between them but also important similarities, and they were both very different from the major recessions that came before the war and the next recession. They are therefore discussed together in this chapter, which takes the story to 1982––the year when the economy can be considered to have emerged from the second of the two recessions. Section 8.1 discusses the background issues––the political developments and the origin of oil price shocks with reference to the UK, Sect. 8.2 seeks to explain the fluctuations of UK demand and output in the period, starting with the 1972 boom––which is seen as one cause of the recession that followed, and Sect. 8.3 considers the general lessons to be derived from the decade; Appendix A8 presents an econometric analysis of the inflationary surges of the 1970s.
Johannes Lindvall
- Published in print:
- 2010
- Published Online:
- January 2011
- ISBN:
- 9780199590643
- eISBN:
- 9780191723407
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199590643.003.0005
- Subject:
- Political Science, Comparative Politics, Political Economy
The concluding chapter summarizes the main results, discusses the implications of these results for the literature on comparative political economy, and shows how governments in Austria, Denmark, the ...
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The concluding chapter summarizes the main results, discusses the implications of these results for the literature on comparative political economy, and shows how governments in Austria, Denmark, the Netherlands, and Sweden responded to the deep economic crisis in 2008–2009.Less
The concluding chapter summarizes the main results, discusses the implications of these results for the literature on comparative political economy, and shows how governments in Austria, Denmark, the Netherlands, and Sweden responded to the deep economic crisis in 2008–2009.
Nachman Ben-Yehuda
- Published in print:
- 2010
- Published Online:
- January 2011
- ISBN:
- 9780199734863
- eISBN:
- 9780199895090
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199734863.003.0009
- Subject:
- Religion, Religion and Society
This chapter uses the data base to generate descriptive statistics. It shows that Haredi deviance and non-conformity increased continuously between 1948-1998. This increase is characterized by ups ...
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This chapter uses the data base to generate descriptive statistics. It shows that Haredi deviance and non-conformity increased continuously between 1948-1998. This increase is characterized by ups and down but with an overall upward trajectory. Most ups and downs are correlated economic, military, political events and with counter secular reactions. Analyzing the different groupings of events and affairs shows that the main category of Haredi infractions consists of violence.Less
This chapter uses the data base to generate descriptive statistics. It shows that Haredi deviance and non-conformity increased continuously between 1948-1998. This increase is characterized by ups and down but with an overall upward trajectory. Most ups and downs are correlated economic, military, political events and with counter secular reactions. Analyzing the different groupings of events and affairs shows that the main category of Haredi infractions consists of violence.
CHRISTOPHER DUGGAN
- Published in print:
- 2002
- Published Online:
- January 2010
- ISBN:
- 9780198206118
- eISBN:
- 9780191717178
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198206118.003.0018
- Subject:
- History, European Modern History
Francesco Crispi's resignation as Italy's prime minister left him full of rancour. He came to believe that the king and the court had conspired to remove him. However, the scandal of the Banca Romana ...
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Francesco Crispi's resignation as Italy's prime minister left him full of rancour. He came to believe that the king and the court had conspired to remove him. However, the scandal of the Banca Romana that was to rock Italy to its foundations would pave the way for his return to power. The radical deputy, Napoleone Colajanni, had secured access to a copy of the Alvisi-Biagini report of 1889. The scandal precipitated a national crisis; a wave of rioting soon swept across the country. The severe recession that had begun in the late 1880s and been exacerbated by the trade war with France, Crispi's heavy defence spending, and the crisis in the banking sector, showed every sign of deepening. With the financial crisis escalating and the situation in Sicily threatening to produce civil war, the clamourings for Crispi became insistent. When the government of Giovanni Giolitti fell from grace, Crispi accepted an invitation to become Minister of the Interior.Less
Francesco Crispi's resignation as Italy's prime minister left him full of rancour. He came to believe that the king and the court had conspired to remove him. However, the scandal of the Banca Romana that was to rock Italy to its foundations would pave the way for his return to power. The radical deputy, Napoleone Colajanni, had secured access to a copy of the Alvisi-Biagini report of 1889. The scandal precipitated a national crisis; a wave of rioting soon swept across the country. The severe recession that had begun in the late 1880s and been exacerbated by the trade war with France, Crispi's heavy defence spending, and the crisis in the banking sector, showed every sign of deepening. With the financial crisis escalating and the situation in Sicily threatening to produce civil war, the clamourings for Crispi became insistent. When the government of Giovanni Giolitti fell from grace, Crispi accepted an invitation to become Minister of the Interior.
Josh Bivens and Lawrence Mishel
- Published in print:
- 2011
- Published Online:
- August 2016
- ISBN:
- 9780801450150
- eISBN:
- 9780801460654
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801450150.003.0001
- Subject:
- Economics and Finance, Public and Welfare
This introductory chapter argues that the consequences of the Great Recession are driven by social and political choices about how the economy is managed. It was not inevitable that the significant ...
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This introductory chapter argues that the consequences of the Great Recession are driven by social and political choices about how the economy is managed. It was not inevitable that the significant run-up in home prices that began in the late 1990s would end with more than eight million Americans losing their jobs and unemployment hitting a twenty-five-year peak. The chapter argues against ascribing the impact of the Great Recession to mere fate, instead it draws comparisons between the shockwaves generated by the economic recession and that of another recent catastrophe—Hurricane Katrina—thus highlighting crucial choices made during and after the aforementioned disasters struck.Less
This introductory chapter argues that the consequences of the Great Recession are driven by social and political choices about how the economy is managed. It was not inevitable that the significant run-up in home prices that began in the late 1990s would end with more than eight million Americans losing their jobs and unemployment hitting a twenty-five-year peak. The chapter argues against ascribing the impact of the Great Recession to mere fate, instead it draws comparisons between the shockwaves generated by the economic recession and that of another recent catastrophe—Hurricane Katrina—thus highlighting crucial choices made during and after the aforementioned disasters struck.
Marcus Rebick
- Published in print:
- 2005
- Published Online:
- July 2005
- ISBN:
- 9780199247240
- eISBN:
- 9780191602566
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199247242.003.0001
- Subject:
- Economics and Finance, South and East Asia
Sets the stage for the analysis in the rest of the book. There is a review of Japan’s long recession, and the thesis is put forward that rising labour costs due to yen appreciation, the downturn of ...
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Sets the stage for the analysis in the rest of the book. There is a review of Japan’s long recession, and the thesis is put forward that rising labour costs due to yen appreciation, the downturn of the 1990s, and changes in corporate governance that have made firms more sensitive to profits have all pushed firms to look for ways of lowering their labour costs through greater use of atypical forms of labour. Also discusses the difficulty in finding a single point at which the labour economy may have seen a structural break.Less
Sets the stage for the analysis in the rest of the book. There is a review of Japan’s long recession, and the thesis is put forward that rising labour costs due to yen appreciation, the downturn of the 1990s, and changes in corporate governance that have made firms more sensitive to profits have all pushed firms to look for ways of lowering their labour costs through greater use of atypical forms of labour. Also discusses the difficulty in finding a single point at which the labour economy may have seen a structural break.
Marcus Rebick
- Published in print:
- 2005
- Published Online:
- July 2005
- ISBN:
- 9780199247240
- eISBN:
- 9780191602566
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199247242.003.0006
- Subject:
- Economics and Finance, South and East Asia
Begins by examining the definition of the unemployment rate in Japan and shows the ways in which the rate may differ from the ILO standard definition. Looks at the phenomenon of labour hoarding and ...
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Begins by examining the definition of the unemployment rate in Japan and shows the ways in which the rate may differ from the ILO standard definition. Looks at the phenomenon of labour hoarding and lower labour force participation and their relation to unemployment. The causes of the recent surge in unemployment are examined. Concludes that despite some increase in involuntary separations, it is the slowdown in hiring that is generating most of the unemployment. This implies that job guarantees have not been eroded that much by the long recession. The last part of the chapter looks at recent trends in income distribution in Japan, and the possibility that income inequality will grow in the future.Less
Begins by examining the definition of the unemployment rate in Japan and shows the ways in which the rate may differ from the ILO standard definition. Looks at the phenomenon of labour hoarding and lower labour force participation and their relation to unemployment. The causes of the recent surge in unemployment are examined. Concludes that despite some increase in involuntary separations, it is the slowdown in hiring that is generating most of the unemployment. This implies that job guarantees have not been eroded that much by the long recession. The last part of the chapter looks at recent trends in income distribution in Japan, and the possibility that income inequality will grow in the future.
Giovanni Piersanti
- Published in print:
- 2012
- Published Online:
- September 2012
- ISBN:
- 9780199653126
- eISBN:
- 9780191741210
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199653126.003.0005
- Subject:
- Economics and Finance, Macro- and Monetary Economics
In order to describe the path followed by major macroeconomic variable around the time of crises, this chapter examines some dynamic models. It thus shows how the dynamic adjustment path of the ...
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In order to describe the path followed by major macroeconomic variable around the time of crises, this chapter examines some dynamic models. It thus shows how the dynamic adjustment path of the economy associated with exchange rate based stabilization plan can be linked to currency crisis. How expected changes in future government's policies can affect the timing of attacks. How a run on central bank's foreign reserves can emerge in a context of consistent and flexible policy rules. How policymakers can elude speculative attacks by introducing uncertainty into the speculators' decisions. That the domestic currency often stays overvalued for a long period. That large discrete devaluations occur after the peg is abandoned. That the domestic interest rates tend to rise in the run up to the crisis. That speculative runs often occur in a multi-period context giving rise to alternating phases of “tranquillity” and “distress”. That asset price dynamics plays a critical role in triggering a full-blown financial crisis.Less
In order to describe the path followed by major macroeconomic variable around the time of crises, this chapter examines some dynamic models. It thus shows how the dynamic adjustment path of the economy associated with exchange rate based stabilization plan can be linked to currency crisis. How expected changes in future government's policies can affect the timing of attacks. How a run on central bank's foreign reserves can emerge in a context of consistent and flexible policy rules. How policymakers can elude speculative attacks by introducing uncertainty into the speculators' decisions. That the domestic currency often stays overvalued for a long period. That large discrete devaluations occur after the peg is abandoned. That the domestic interest rates tend to rise in the run up to the crisis. That speculative runs often occur in a multi-period context giving rise to alternating phases of “tranquillity” and “distress”. That asset price dynamics plays a critical role in triggering a full-blown financial crisis.
Catherine Barnard
- Published in print:
- 2010
- Published Online:
- September 2010
- ISBN:
- 9780199583188
- eISBN:
- 9780191594502
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199583188.003.0004
- Subject:
- Law, Constitutional and Administrative Law, EU Law
The European Commission has seized upon the concept of solidarity to give weight to two major policy documents examining the future of social policy in the EU, ‘Opportunities, Access and Solidarity: ...
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The European Commission has seized upon the concept of solidarity to give weight to two major policy documents examining the future of social policy in the EU, ‘Opportunities, Access and Solidarity: towards a new social vision for 21st Century Europe’ of 2007 and ‘The Renewed Social Agenda: Opportunities, Access and Solidarity’ of 2008. This chapter examines the concept of solidarity as used in these two documents and how it relates to ‘opportunities’ and ‘access’. It argues that solidarity in these documents is employed to serve a variety of functions ranging from, at a meta-level, an objective of EU social policy to, at a more micro-level, an instrument to help foster cohesion and community, particularly through the use of structural funds. The chapter considers this variety of uses and concludes with a discussion of whether solidarity is a sufficiently sturdy vehicle to steer Union social policy through the challenges of the next decade, especially at a time when a severe recession has hit most of the member states.Less
The European Commission has seized upon the concept of solidarity to give weight to two major policy documents examining the future of social policy in the EU, ‘Opportunities, Access and Solidarity: towards a new social vision for 21st Century Europe’ of 2007 and ‘The Renewed Social Agenda: Opportunities, Access and Solidarity’ of 2008. This chapter examines the concept of solidarity as used in these two documents and how it relates to ‘opportunities’ and ‘access’. It argues that solidarity in these documents is employed to serve a variety of functions ranging from, at a meta-level, an objective of EU social policy to, at a more micro-level, an instrument to help foster cohesion and community, particularly through the use of structural funds. The chapter considers this variety of uses and concludes with a discussion of whether solidarity is a sufficiently sturdy vehicle to steer Union social policy through the challenges of the next decade, especially at a time when a severe recession has hit most of the member states.
Kiran Klaus Patel
- Published in print:
- 2016
- Published Online:
- October 2017
- ISBN:
- 9780691149127
- eISBN:
- 9781400873623
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691149127.003.0001
- Subject:
- History, American History: 20th Century
This chapter sets the stage and interprets the Great Depression as a global event, as a time of testing for both democracy and capitalism. The Great Depression was not solely an American experience, ...
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This chapter sets the stage and interprets the Great Depression as a global event, as a time of testing for both democracy and capitalism. The Great Depression was not solely an American experience, even if the United States was one of its main origins and particularly hard-hit by its consequences. The slump had global repercussions, and it fundamentally changed the way that Americans and others were connected to and interacted with the wider world. While political reactions tended to separate and segregate, the suffering was shared across latitude and longitude. By 1933, it was still unclear whether the crisis would destroy or fundamentally transform capitalism along with the fabric of capitalist societies. In the wake of the Depression, this ambivalence reverted to economic nationalism, protectionism, and a rather parochial attitude.Less
This chapter sets the stage and interprets the Great Depression as a global event, as a time of testing for both democracy and capitalism. The Great Depression was not solely an American experience, even if the United States was one of its main origins and particularly hard-hit by its consequences. The slump had global repercussions, and it fundamentally changed the way that Americans and others were connected to and interacted with the wider world. While political reactions tended to separate and segregate, the suffering was shared across latitude and longitude. By 1933, it was still unclear whether the crisis would destroy or fundamentally transform capitalism along with the fabric of capitalist societies. In the wake of the Depression, this ambivalence reverted to economic nationalism, protectionism, and a rather parochial attitude.
Kenneth A. Armstrong
- Published in print:
- 2010
- Published Online:
- January 2011
- ISBN:
- 9780199278374
- eISBN:
- 9780191594861
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199278374.003.0008
- Subject:
- Law, EU Law
A decade of the Lisbon strategy and of policy coordination through the OMC has produced little change in the number of households at risk of income poverty. Meanwhile the economic recession following ...
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A decade of the Lisbon strategy and of policy coordination through the OMC has produced little change in the number of households at risk of income poverty. Meanwhile the economic recession following a global financial crisis has threatened to wipe out past gains. It is against this economic background, together with a changed legal and institutional context, and a new policy context — Europe 2020 — that this chapter evaluates how to strengthen EU intervention. It cautions against assumptions that strengthening implies hardening the social OMC, either by turning to ‘hard law’ or mimicking treaty-based coordination processes. Rather, it suggests that the task for policymakers is to learn the specific lessons of a decade of experience in order to improve the institutional design of coordination processes, including adoption of ‘hybrid’ solutions. Impulses to centralize decision-making ought to be resisted.Less
A decade of the Lisbon strategy and of policy coordination through the OMC has produced little change in the number of households at risk of income poverty. Meanwhile the economic recession following a global financial crisis has threatened to wipe out past gains. It is against this economic background, together with a changed legal and institutional context, and a new policy context — Europe 2020 — that this chapter evaluates how to strengthen EU intervention. It cautions against assumptions that strengthening implies hardening the social OMC, either by turning to ‘hard law’ or mimicking treaty-based coordination processes. Rather, it suggests that the task for policymakers is to learn the specific lessons of a decade of experience in order to improve the institutional design of coordination processes, including adoption of ‘hybrid’ solutions. Impulses to centralize decision-making ought to be resisted.
Rebecca M. Blank
- Published in print:
- 2011
- Published Online:
- March 2012
- ISBN:
- 9780520266926
- eISBN:
- 9780520938960
- Item type:
- chapter
- Publisher:
- University of California Press
- DOI:
- 10.1525/california/9780520266926.003.0008
- Subject:
- Sociology, Race and Ethnicity
This chapter focuses explicitly on the current economic environment in the United States. It discusses possible ways in which the major economic shock caused by the recently experienced global ...
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This chapter focuses explicitly on the current economic environment in the United States. It discusses possible ways in which the major economic shock caused by the recently experienced global economic recession might influence long-term trends in inequality. It notes that the most likely outcome is that the current trends will persist and that the forces that have been driving increased inequality over the past three decades will continue to operate. It adds that there are possible economic and political changes that may emerge from a deep and sustained recession that could alter the recent trend toward increased inequality and equalize incomes in the years ahead.Less
This chapter focuses explicitly on the current economic environment in the United States. It discusses possible ways in which the major economic shock caused by the recently experienced global economic recession might influence long-term trends in inequality. It notes that the most likely outcome is that the current trends will persist and that the forces that have been driving increased inequality over the past three decades will continue to operate. It adds that there are possible economic and political changes that may emerge from a deep and sustained recession that could alter the recent trend toward increased inequality and equalize incomes in the years ahead.
Matthew P Drennan
- Published in print:
- 2015
- Published Online:
- May 2016
- ISBN:
- 9780300209587
- eISBN:
- 9780300216349
- Item type:
- book
- Publisher:
- Yale University Press
- DOI:
- 10.12987/yale/9780300209587.001.0001
- Subject:
- Political Science, Public Policy
This book tells two stories. First, it shows that rising income inequality played a major role in causing the financial crisis and Great Recession of 2008-2009. While others have argued that rising, ...
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This book tells two stories. First, it shows that rising income inequality played a major role in causing the financial crisis and Great Recession of 2008-2009. While others have argued that rising, indeed surging, household debt in the 1990s and 2000s contributed to the financial collapse, none have related rising household debt to the dramatic rise in income inequality. The rise in household debt was not the result of a rash of luxury, but instead was the effort to maintain consumption despite stagnant incomes. Part of that effort is reflected in the unprecedented drop in the rate of saving from around 10 percent to near zero. It is also reflected in the sharp rise of relative spending on three necessities of a middle class lifestyle -- housing, education, and health. Some of that jump in relative spending was brought about by steep price increases. Their prices were bid up by those whose incomes had skyrocketed. Thus to the usual suspects causing the recession–unsustainable residential mortgage debt, low interest rates, predatory lending and the housing price bubble–income inequality must be included. The second story is that mainstream economists have misunderstood the causes of the recession because they have adhered to a macroeconomic theory that ignores the role of income distribution. Mainstream economic theory maintains that inequality has no impact on macroeconomic outcomes. That view is incorrect and led most economists to ignore the serious consequences of rising inequality, despite the striking parallel with the Great Depression.Less
This book tells two stories. First, it shows that rising income inequality played a major role in causing the financial crisis and Great Recession of 2008-2009. While others have argued that rising, indeed surging, household debt in the 1990s and 2000s contributed to the financial collapse, none have related rising household debt to the dramatic rise in income inequality. The rise in household debt was not the result of a rash of luxury, but instead was the effort to maintain consumption despite stagnant incomes. Part of that effort is reflected in the unprecedented drop in the rate of saving from around 10 percent to near zero. It is also reflected in the sharp rise of relative spending on three necessities of a middle class lifestyle -- housing, education, and health. Some of that jump in relative spending was brought about by steep price increases. Their prices were bid up by those whose incomes had skyrocketed. Thus to the usual suspects causing the recession–unsustainable residential mortgage debt, low interest rates, predatory lending and the housing price bubble–income inequality must be included. The second story is that mainstream economists have misunderstood the causes of the recession because they have adhered to a macroeconomic theory that ignores the role of income distribution. Mainstream economic theory maintains that inequality has no impact on macroeconomic outcomes. That view is incorrect and led most economists to ignore the serious consequences of rising inequality, despite the striking parallel with the Great Depression.
