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For China's economy to continue to grow rapidly it will need to invest further its human capital, and ensure there is a stable legal regime.
Monetary Policy Is Not Expansionary Monetary policy is not expansionary despite widespread belief otherwise. Please share this article - Go to very top of page, right hand side, for social media buttons. The general assumption by the Federal Reserve is that by providing excess reserves to the banking system, the banks would then lend to businesses and individuals to expand economic activity. Furthermore, as discussed previously, the Federal Reserve’s entire premise of inflating asset prices was the subsequent boost to economic activity from an increased “wealth effect." “This approach...
The scale and scope of government spending expansion in the last year are unprecedented.
By Lars P. SyllAccording to the Ricardian equivalence hypothesis the public sector basically finances its expenditures through taxes or by issuing bonds, and bonds must sooner or later be repaid by raising taxes in the future.
Legendary investor Jeremy Grantham said, âRemember that history always repeats itself. Every great bubble in history has broken. There are no exceptions.â President Biden is doing his best to bring that forecast about. President Trump was no fiscal conservative, but Biden is making him look like a piker. Bidenâs stimulus package, infrastructure proposal, and proposed budget total about $6 trillion. That is problematic. What follows are broad concepts that may be seemingly unrelated. I don't have space to fully explain each concept, so bear with me. Deficit spending has caused n...