Read e-book online Alternative Perspectives on Economic Policies in the PDF

By Philip Arestis, Malcolm Sawyer (eds.)

ISBN-10: 0230627358

ISBN-13: 9780230627352

ISBN-10: 1349285161

ISBN-13: 9781349285167

ISBN-10: 1403999368

ISBN-13: 9781403999368

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Reduction of public expenditure) and of ‘labour market flexibility’. The ECB has been given the objective of price stability, but its advocacy of policies extends well Philip Arestis and Malcolm Sawyer 25 outside its mandate and constitutes the pursuit of its own agenda. It is debatable whether this advocacy of fiscal consolidation and labour market flexibility and its pronouncements of the ‘pensions problem’ are consistent with the mandate of the ECB to support the economic policies of the EU.

3. Issing (2003) puts it in the following way: ‘Widespread consensus: even low inflation entails significant costs’. This statement should be judged against evidence provided by Ghosh and Phillips (1998), where a large panel set that covers IMF countries over the period 1960–96 is utilised, to conclude that ‘there are two important nonlinearities in the inflation–growth relationship. At very low inflation rates (around 2–3 percent a year, or lower), inflation and growth are positively correlated.

3. Issing (2003) puts it in the following way: ‘Widespread consensus: even low inflation entails significant costs’. This statement should be judged against evidence provided by Ghosh and Phillips (1998), where a large panel set that covers IMF countries over the period 1960–96 is utilised, to conclude that ‘there are two important nonlinearities in the inflation–growth relationship. At very low inflation rates (around 2–3 percent a year, or lower), inflation and growth are positively correlated.

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Alternative Perspectives on Economic Policies in the European Union by Philip Arestis, Malcolm Sawyer (eds.)


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