Description
| Product ID: | 9783030550448 |
| Product Form: | Hardback |
| Country of Manufacture: | CH |
| Title: | Defensive Expectations |
| Subtitle: | Reinventing the Phillips Curve as a Policy Mix |
| Authors: | Author: Liviu Voinea |
| Page Count: | 196 |
| Subjects: | Macroeconomics, Macroeconomics, Microeconomics, Political economy, Microeconomics, Political economy |
| Description: | Select Guide Rating This book explains why inflation remains subdued after recessions, based on three revolutionary concepts: defensive expectations, compensatory savings, and cumulative wage gap. This book explains why inflation remains subdued after recessions, based on three revolutionary concepts: defensive expectations, compensatory savings, and cumulative wage gap. When income falls, consumption falls, and savings rise, as people rebuild their past wealth. Households will not spend more until they fully recover what they lost. The revised Phillips Curve explains that current inflation depends on the cumulative difference between current income and past income. This new theory is tested and validated by data for US since 1960 to date and for 35 OECD countries from 1990 to date. A number of policy implications are derived from these results. The book calls for an optimal policy mix between monetary policy and fiscal policy; it also discusses the coronavirus crisis as an extreme case of defensive expectations. |
| Imprint Name: | Springer Nature Switzerland AG |
| Publisher Name: | Springer Nature Switzerland AG |
| Country of Publication: | GB |
| Publishing Date: | 2020-12-10 |