New Challenges for Macroeconomic Policies: Economic Growth, Sustainable Development, Fiscal and Monetary Policies

Preface
Acknowledgments
Contents
List of Figures
List of Tables
1 Introduction
1.1 Macroeconomic Policies Are Facing New Challenges
1.2 Main Topics Discussed in the Book
References
PartI Growth, Macroeconomic Imbalances, and Sustainable Development
2 Is There Any Evidence of a Deterioration of Production Capacities in the Advanced Economies?
2.1 Analysis of the Sources of Growth: The Challenges Raised by the Fourth Industrial Revolution
2.1.1 ICT Investment and Growth Accounting Decomposition
2.1.2 Some Alternatives to Growth Accounting Decomposition
2.1.3 New Theoretical Growth Models of Digital and Knowledge Economics
2.1.3.1 Models Which Belong to the Neoclassical and Schumpeter Traditions
2.1.3.2 Hot Topics for Future Research
2.2 Evolution of the Factors of Production: Capital, Labor, and Factor Productivity
2.2.1 Why Are Productivity Gains Shrinking?
2.2.2 New Technologies and Employment
2.2.3 What Are the Causes of the Trend Decline in Investment?
2.2.4 Demography, Productivity, and Weakening Growth
2.3 Conclusion
Appendix
References
3 Hysteresis, Inflation, and Secular Stagnation
3.1 Hysteresis and Super-hysteresis in GDP Data
3.1.1 Long-Memory Processes: Definition
3.1.2 Examples of Losses of Potential GDP
3.2 Are Expansions Good and Recessions Bad for Jobs?
3.2.1 Some Analytical Relationships for the Okun Law
3.2.2 Econometric Evidence
3.3 Is the Phillips Curve Obsolete?
3.3.1 How Does Unemployment Affect Inflation? A Very Simple Model
3.3.2 Some Empirical Evidence
3.3.3 Inflation and Economic Slack
3.3.4 Directions of the Current Literature on Phillips Curves
3.4 The Secular Stagnation Hypothesis
3.4.1 How to Characterize Secular Stagnation?
3.4.2 Some Theoretical Models of Secular Stagnation
3.5 Implications on How to Teach Macroeconomics
3.6 Conclusion
References
4 New Thinking on Sustainable Development and Growth
4.1 A Global Approach to Sustainable Growth and Development
4.1.1 Economic Ecosystems Interact with Other Ecosystems
4.1.2 Why Has the Global Approach Had Little Success with Economists?
4.1.3 Sustainable Development and Polarities
4.1.4 What Are the Directions for Future Research?
4.2 Economic Well-Being and Sustainable Growth
4.3 Sustainable Growth and Social Inclusion: A Trade-Off between Inequality and Poverty?
4.3.1 Fighting Poverty: The First Objective of Inclusive Growth
4.3.2 The Question of the Trade-Off between Poverty and Inequality
4.4 A Hot Topic for the Twenty-First Century: Should Inheritance be Taxed?
4.5 Conclusion
References
PartII Financial, Monetary, and Fiscal Policies
5 Interest Rates, Financial Markets, and Macroeconomics
5.1 What Are the Causes of the Downward Trend in Market Interest Rates?
5.1.1 Do Monetary Policies Explain Negative Sovereign Bond Yields?
5.1.2 Do Low Market Interest Rates Reflect Low Natural Interest Rates?
5.2 Corporates' Return on Equity and Net Saving
5.2.1 A Decomposition of Corporates' Gross Value Added
5.2.2 Some Illustrations for Non-financial Corporations
5.3 Financial Market Developments and Macroeconomics
5.3.1 Defining the Financial Cycle
5.3.2 Linking the Financial Cycle and the Real Economy : Empirical Evidence
5.3.3 Introducing the Financial Sector in Theoretical Models
5.4 Conclusion
References
6 New Challenges for Monetary Policy
6.1 Challenging the Theoretical Foundations of Monetary Policy
6.1.1 Does the Quantity Theory of Money Still Hold?
6.1.2 The Neo-Fischerian Interpretations of Monetary Policy
6.1.3 Choosing Monetary Policy Targets
6.2 The New Challenges of Monetary policy
6.2.1 Unconventional Monetary Policies
6.2.2 Experiences from Three Major Central Banks
6.2.3 Unconventional Monetary Policy in the New-Keynesian Model: Examples
6.2.3.1 The Wu–Xia Monetary Policy Rule
6.2.3.2 Unconventional Policies When the Natural Interest Rate Is Low: An Illustration
6.2.3.3 Unconventional Monetary Policy and the Open Economy
6.3 Other Debates on Monetary Policies: Helicopter Money, Macroprudential Policies
6.3.1 Helicopter Money
6.3.2 Monetary and Macroprudential Policies
6.4 Conclusion
References
7 Fiscal Policy Issues
7.1 New Goals for Fiscal Policies
7.1.1 What Political Economy of Fiscal Strategies in the Twenty-First Century?
7.1.2 A Renewed Role of the State Favored by Repeated Crises: The Need for Inclusive Fiscal Policies
7.1.3 Rethinking Fiscal Policy Objectives in Times of Crisis: Insurance Against Large-Scale Shocks
7.2 Debt Sustainability
7.2.1 Theoretical Framework
7.2.2 Debt Sustainability When Interest Rates Are Very Low
7.2.3 An Illustration of Interest Rate Stabilization Effects on Debt: United States and United Kingdom
7.3 A Granular Approach to Debt Vulnerability
7.3.1 Debt Sustainability Analysis Under the Lower Scrutiny
7.3.2 Debt Sustainability Analysis Under the Higher Scrutiny
7.4 Is the Japanese Public Debt Unsustainable, or Has It Always Been Sustainable?
7.5 Can Public Debts Be Stabilized When There Is No Fiscal Union? The Eurozone Example
7.5.1 The Institutional Context
7.5.2 Are the European Public Debts Sustainable?
7.5.3 Should the Fiscal Rules in the Euro Area Be Reconsidered?
7.6 Conclusion
References
8 Beyond Mainstream Macroeconomics
8.1 Inflation Regimes and Modes of Regulation of Capitalism
8.1.1 Inflation, Wages, and Competitive Market Capitalism from 1760 to 1913
8.1.2 Inflation, Wages, and Competitive Market Capitalism Since the Mid-1990s
8.1.3 The Wage-Price Loop in Post-war Contractual Capitalism
8.1.4 Conflicts over the Sharing of Income at the Beginning of the Twenty-first Century
8.2 Implication for the Theoretical Framework of Inflation Analysis
8.2.1 National Account Framework
8.2.2 Heterodox Interpretation of the Phillips Curve: Example
8.3 Modern Monetary Theory
8.3.1 Some Contributions of MMT to the Analysis of Economic Policy
8.3.2 Criticisms of MMT
8.4 Heterodox Views of Economic Growth
8.4.1 Factors That Have Accelerated the Acceptance of Heterodox Ideas About Growth
8.4.2 The Main Ideas of Heterodox Approaches to Economic Growth
8.5 Conclusion
References
9 Conclusion
Index