Summary Spring 2003

The latest Strategic Analysis by the Institute’s Macro-Modeling Team shows that the growth rate of private sector debt is unsustainable. The domestic economy is headed for a period of growth recession that can be offset only by a fiscal stimulus from the government sector, the authors say, and by increasing net export demand.

Contents: The most recent Strategic Analysis (Dimitri B. Papadimitriou, Anwar M. Shaikh, Claudio H. Dos Santos, and Gennaro Zezza) · New Working Paper topics include: Income Dynamics of the Elderly, the Persistence of Hardship, the Causal Significance of the Stock of Money, the Economics of the “Third Way,” the Tobin Tax, Equity Prices under Asset and Debt Deflation, the Effectiveness of Monetary and Fiscal Policies, Testing for Financial Contagion, the Credibility of Monetary Policy · New Policy Note: The Case for Public Spending · New Research Associate