Former White House chief economic advisor Nouriel Roubini discusses the major limits of central-bank-driven fiscal deficits.
Rose Prince

2019-12-25 19:46:00 Wed ET

Former White House chief economic advisor Nouriel Roubini discusses the major limits of central-bank-driven fiscal deficits. The International Monetary Fund (IMF) projects subpar global economic growth due to the recent trifecta of the tentative Sino-U.S. trade agreement, geopolitical energy tension in the middle east, and a cloudy economic outlook for Britain and E.U. in light of soft Brexit trade uncertainty. These primary global tail risks anchor inflation expectations worldwide, so central banks engage in tacit monetary policy coordination in accordance with the tripartite congressional mandate of maximum sustainable employment, price stability, and financial market stabilization.

With greater government bond issuance, central banks can help fund fiscal deficits that manifest in the form of both tax cuts and infrastructure expenditures. Left-wing proponents of Modern Monetary Theory argue that larger permanent fiscal deficits help stimulate economic growth when central banks monetize these fiscal deficits in the absence of runaway inflation and economic slack.

However, Roubini argues that the current monetization of fiscal deficits cannot be a sustainable policy response in the long run. Either the global economy eventually experiences a supply shock due to pervasive shortages of oil and natural gas, or an inflationary shock becomes a major economic disturbance worldwide.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More
The recent British pound depreciation is a big Brexit barometer.
Apple Boston

2019-08-20 07:33:00 Tuesday ET

The recent British pound depreciation is a big Brexit barometer.

The recent British pound depreciation is a big Brexit barometer. Britain appoints former London mayor and Foreign Secretary Boris Johnson as the prime minis

+See More
Americans continue to keep their financial New Year resolutions.
Jonah Whanau

2019-01-15 13:35:00 Tuesday ET

Americans continue to keep their financial New Year resolutions.

Americans continue to keep their financial New Year resolutions. First, Americans should save more money. Everyone needs a budget to ensure that key paychec

+See More
Apple CEO Tim Cook maintains a frugal low-key lifestyle.
Jonah Whanau

2019-10-11 13:40:00 Friday ET

Apple CEO Tim Cook maintains a frugal low-key lifestyle.

Apple CEO Tim Cook maintains a frugal low-key lifestyle. With $625 million public wealth, Cook leads the $1 trillion tech titan Apple in the post-Jobs era.

+See More
Facebook reaches a $5 billion settlement with the Federal Trade Commission over Cambridge Analytica user privacy violations.
Monica McNeil

2019-08-12 07:30:00 Monday ET

Facebook reaches a $5 billion settlement with the Federal Trade Commission over Cambridge Analytica user privacy violations.

Facebook reaches a $5 billion settlement with the Federal Trade Commission over Cambridge Analytica user privacy violations. The Federal Trade Commission (F

+See More
AYA finbuzz podcast offers fresh insights into the latest stock market topics and economic trends for better stock investment decisions.
Daphne Basel

2019-09-30 07:33:00 Monday ET

AYA finbuzz podcast offers fresh insights into the latest stock market topics and economic trends for better stock investment decisions.

AYA Analytica finbuzz podcast channel on YouTube September 2019 In this podcast, we discuss several topical issues as of September 2019: (1) Former

+See More
The International Monetary Fund (IMF) appoints Harvard professor Gita Gopinath as its chief economist.
Dan Rochefort

2018-10-09 08:40:00 Tuesday ET

The International Monetary Fund (IMF) appoints Harvard professor Gita Gopinath as its chief economist.

The International Monetary Fund (IMF) appoints Harvard professor Gita Gopinath as its chief economist. Gopinath follows her PhD advisor and trailblazer Kenn

+See More