In the United States, fiscal policy, monetary policy, incomes policy, debt management policy, and supply-side policy are artificial means to achieve macroeconomic goals.
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Central banks, national governments, and international organizations have resisted policies that would promote full employment because high employment and high capacity utilization are associated with structural rigidities that result in sluggish growth, inflationary pressures, and other undesirable consequences. What has been almost entirely overlooked is the way in which public sector activity can enhance flexibility with regard to labor, capital goods, natural resources and environmental protection, methods of production, and location of economic activity. The job opportunity approach makes strategic use of public sector activity to create truly full employment, thereby reducing the social and economic costs of unemployment, and to promote projects designed to be consistent with broad macroeconomic goals and social values.
Macroeconomics: Principles and Policy (ninth edition) William J
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The fact that every change in the minimum wage requires an act of Congress means that debate over the wisdom of having a minimum is repeatedly returned to the political arena. As inflation continues to erode the value of the minimum wage, each legislative delay means that a larger increase is required. The larger the increase, the more resistance to its passage, so that by the time Congress acts, the political compromise is an increase that is too little and too late to be of much help in lifting workers out of poverty. Automatic adjustment of the wage, with increases keyed to measures of private sector productivity, would eliminate this problem. With the institution of a mechanism that provides regular and incremental increases, Congress will no longer be forced to revisit the issue, employers will not be confronted by sudden and large increases, and the value of the wage will be maintained.
The Goals of Macroeconomic Policy asks why
The implementation of appropriate trade and macroeconomic policies is critical for another important aspect of food security; the ability to finance the importation of food that is not produced domestically or is not produced in sufficient quantities, both when there are short-term price fluctuations and in order to meet the ongoing import needs reliably.
Documents - African Development Bank
As noted earlier, there appears to be a long-term shift in the terms of trade away from the traditional agricultural export crops in favour of food crops. Thus, over time, a country's comparative advantage will change. Trade and macroeconomic policies, as well as sectoral pricing policies, need to permit the agricultural sector to respond to changes in comparative advantage patterns by reallocation of resources. However, in anticipation of these changes, governments need to invest in the long-term development of agriculture and the rural economy.
fiscal policy – Pearson Economic News
Using theoretical predictions, econometric results, and the example of the Volcker disinflation, Willem Thorbecke establishes that through disinflation’s burden on the durable goods and construction industries, small firms, and low-wage workers and its benefits to bond market investors, it effects a redistribution of wealth from the poor to the rich. Because of this distributional consequence, he argues, engineering a disinflationary recession now to wring more inflation out of the economy would be inappropriate. On the contrary, with inflation as low as it is and with upward pressure on wages that could trigger a rise in inflation also low, now is the time for the Federal Reserve to let the economy grow—to seek policies that promote distributive justice and that help those individuals most at risk for shrinking income.