Overview
- Details the science showing increasing the total loanable funds pool can offset crowd out
- Examines the mechanical problems that have developed for implementing accommodative monetary policy
- Demonstrates that if loanable funds are increased sufficiently and appropriately, Keynesian macroeconomic policies will work
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Table of contents (30 chapters)
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Front Matter
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Introductory Chapters
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Front Matter
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Theory of Crowd Out and Accommodative Monetary Policy
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Front Matter
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The Effectiveness of Accommodating Monetary Policy Mechanics
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Front Matter
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Increases in M1—Effects on Stock and Bond Markets and the GDP
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Front Matter
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Does Crowd Out Really Occur?
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Front Matter
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Keywords
About this book
This book offers a series of statistical tests to determine if the “crowd out” problem, known to hinder the effectiveness of Keynesian economic stimulus programs, can be overcome by monetary programs. It concludes there are programs that can do this, specifically “accommodative monetary policy.” They were not used to any great extent prior to the Quantitative Easing program in 2008, causing the failure of many fiscal stimulus programs through no fault of their own. The book includes exhaustive statistical tests to prove this point. There is also a policy analysis section of the book. It examines how effectively the Federal Reserve’s anti-crowd out programs have actually worked, to the extent they were undertaken at all. It finds statistical evidence that using commercial and savings banks instead of investment banks when implementing accommodating monetary policy would have markedly improved their effectiveness. This volume, with its companion volume Why Fiscal Stimulus Programs Fail, Volume 2: Statistical Tests Comparing Monetary Policy to Growth, provides 1000 separate statistical tests on the US economy to prove these assertions.
Reviews
“Keynesian macro policy has been thought to fail because of crowding out… this book shows that Keynesian macro policy was not the failure, it was the accommodating monetary policies that failed;…Furthermore, it appears that the use of investment banks, rather than commercial and savings and loans banks, significantly obstructed the effectiveness of the accommodative policies.” (-John Polimeni, Associate Professor of Economics, Albany College of Pharmacy.)
"Why Fiscal Stimulus Fails (Vol. 1) succeeds in its quest to establish the relationship between government deficits, crowding out, and monetary policy. The treatise benefits further from Heim’s requirements that economic models be replicable… the thoroughness and clarity of Heim’s presentation makes the work accessible to anyone.” (-Robert Jones, Rensselaer Polytechnic Institute.)
Authors and Affiliations
About the author
John J. Heim is Visiting Professor at University of Albany-SUNY, and retired Clinical Professor of Economics at Rensselaer Polytechnic Institute, both in New York, USA. He has served in cabinet and subcabinet positions in NY State and Local Government. He is also an inventor of renewable energy devices (“wave energy converters”) and holds patents in this area.
Bibliographic Information
Book Title: Why Fiscal Stimulus Programs Fail, Volume 1
Book Subtitle: The Limits of Accommodative Monetary Policy in Practice
Authors: John J. Heim
DOI: https://doi.org/10.1007/978-3-030-65675-1
Publisher: Palgrave Macmillan Cham
eBook Packages: Economics and Finance, Economics and Finance (R0)
Copyright Information: The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2021
Hardcover ISBN: 978-3-030-65674-4Published: 20 March 2021
Softcover ISBN: 978-3-030-65677-5Published: 20 March 2022
eBook ISBN: 978-3-030-65675-1Published: 19 March 2021
Edition Number: 1
Number of Pages: XXXIII, 577
Number of Illustrations: 34 b/w illustrations
Topics: Macroeconomics/Monetary Economics//Financial Economics, Econometrics, Public Finance