Kemal Derviş is a former Turkish cabinet minister and UN official, now a vice
president at the Brookings Institution. His view is representative of the
growing sentiment within elite circles - extending well beyond Keynesians -
that reliance on monetary policy has proved ineffective and that a turn to
fiscal stimulus is necessary to stave off a deepening crisis.
They’re strongly opposed to negative interest rates, the latest experiment with
monetary policy, and propose instead to transfer money directly from the state
to individuals by such means as a guaranteed annual income, wage rises by
legislation or “moral suasion”, and job-creation programs.
“The fact that economists whose views typically fall nowhere near those of the
far left are even thinking about such interventionism shows just how extreme
circumstances have become”, Derviş says.
The problem, as always, is that the long-range interests of the global ruling
class are typically subordinated to the immediate and often conflicting
interests of its component corporations, nation-states, and regional trading
blocs, inhibiting effective coordinated action on the economy, environment, and
other pressing matters.
https://www.project-syndicate.org/commentary/coordinated-monetary-policy-revive-growth-by-kemal-dervis-2016-03?utm_source=Project+Syndicate+Newsletter&utm_campaign=5ce32503be-Roubini_2008_Revisited_3_6_2016&utm_medium=email&utm_term=0_73bad5b7d8-5ce32503be-93630617
<https://www.project-syndicate.org/commentary/coordinated-monetary-policy-revive-growth-by-kemal-dervis-2016-03?utm_source=Project+Syndicate+Newsletter&utm_campaign=5ce32503be-Roubini_2008_Revisited_3_6_2016&utm_medium=email&utm_term=0_73bad5b7d8-5ce32503be-93630617>
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