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How the Economy Works

Posted on 2010-05-10




Name:How the Economy Works
ASIN/ISBN:0195397916
File size:1.25 Mb
   How the Economy Works

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Title: : Confidence, Crashes and Self-Fulfilling Prophecies

Author: Roger E. A. Farmer

Publish date: April 8, 2010

Format: PDF

Language: English

Size: 1,25 MB

ISBN-10: 0195397916


Description:

A fantastic, concise introduction to Economics! Covers classical economics, Keynesian economics, rational expectations, central banking, the persistence of unemployment, why the stock market matters to everyone, the possibility of another Great Depression, whether monetary and fiscal policy will work, and the authors' take on how the economic crisis might be solved. It's a really handy summary for people who don't know much about economics and are struggling through all the terminology and historical background to figure this current mess out.

The bottom line is that this last crisis has permanently destroyed jobs worldwide. Farmer believes that a new kind of rational worldwide regulation for stability is needed rather than the radicalized free market ideology that helped create this boom-and-bust situation: "The correct response to the crisis is to set in place, in every country in the world, an institution to control the value of national stock market wealth by targeting the rate of growth of on index fund. Ideally, this function would be taken on by the nation's central bank and coordinated with domestic monetary policy. Central banks should use changes in the size of their balance sheets to prevent inflation from rising too high or too low. They should use changes in the composition of their balance sheets to prevent bubbles and crashes"

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