Debates in Monetary Macroeconomics: Tackling Some Unsettled Questions

This edited volume presents key unresolved debates in monetary macroeconomics, covering budget, trade, taxes, exchange rates, and monetary policy, with arguments presented in the spirit of political economy and incorporating the most recent thinking in macroeconomics. It is ideal for students, researchers, and the general public.

Format: Hardback
Length: 244 pages
Publication date: 02 December 2022
Publisher: Springer International Publishing AG

This edited volume presents a comprehensive exploration of the most pressing and contentious debates in monetary macroeconomics, encompassing a wide range of topics such as budget, trade, taxes, exchange rates, and monetary policy. Each of these topics is approached by two distinguished authors, each presenting a compelling argument for a specific policy stance. Rather than relying on mathematical models or econometric analysis, the book adopts a political economy-inspired approach, emphasizing the interplay of economic forces and social structures. This unique approach, combined with the explicit goal of fostering lively debate, makes this volume an invaluable resource for students of monetary macroeconomics, researchers seeking alternative perspectives, and members of the general public interested in understanding the complex dynamics of the global economy.

Budget:
The budget plays a crucial role in shaping government spending and taxation policies, which in turn have a significant impact on economic growth and stability. In this chapter, two authors present opposing viewpoints on the role of government spending in promoting economic growth. One author argues that increased government spending can stimulate economic activity by creating jobs and boosting consumer demand. They advocate for policies such as infrastructure investment, social welfare programs, and education spending to boost economic growth and reduce inequality. On the other hand, the opposing author argues that government spending can lead to wasteful and inefficient use of resources, which can hinder economic growth and exacerbate government debt. They advocate for policies that prioritize fiscal responsibility, such as cutting wasteful programs, reducing government debt, and promoting private-sector investment.

Trade:
Trade is a fundamental aspect of the global economy, and its impact on economic growth and development is widely debated. In this chapter, two authors present opposing viewpoints on the benefits and costs of international trade. One author argues that international trade promotes economic growth by allowing countries to specialize in producing goods and services in which they have a comparative advantage. They advocate for policies such as free trade agreements, reduced trade barriers, and increased foreign investment to promote economic growth and create job opportunities. On the other hand, the opposing author argues that international trade can lead to job losses and wage stagnation in developed countries, as companies seek to outsource production to countries with lower labor costs. They advocate for policies that protect domestic industries and workers, such as tariffs, trade restrictions, and labor regulations.

Taxes:
Taxes are a critical source of government revenue, and their design and implementation can have a significant impact on economic growth and inequality. In this chapter, two authors present opposing viewpoints on the role of taxes in promoting economic growth. One author argues that taxes can be used to promote economic growth by incentivizing investment and innovation. They advocate for policies such as lower corporate tax rates, tax credits for research and development, and tax incentives for small businesses. On the other hand, the opposing author argues that taxes can be harmful to economic growth by discouraging investment and reducing consumer spending. They advocate for policies that reduce tax burdens on individuals and businesses, such as tax cuts, tax credits for low-income households, and tax simplification.

Exchange Rates:
Exchange rates play a crucial role in determining the competitiveness of a country's exports and imports, and their fluctuations can have a significant impact on economic growth and stability. In this chapter, two authors present opposing viewpoints on the role of central banks in managing exchange rates. One author argues that central banks should use monetary policy to stabilize exchange rates and promote economic growth. They advocate for policies such as interest rate adjustments, quantitative easing, and foreign exchange interventions to manage exchange rates and promote economic stability. On the other hand, the opposing author argues that central banks should allow exchange rates to fluctuate freely to promote economic growth and reduce the risk of currency crises. They advocate for policies that promote market-based exchange rates, such as floating exchange rates and free trade.

Monetary Policy:
Monetary policy is a key tool used by central banks to regulate the money supply and control inflation. In this chapter, two authors present opposing viewpoints on the effectiveness of monetary policy in promoting economic growth and stability. One author argues that monetary policy can be used to stimulate economic growth by reducing interest rates and increasing the money supply. They advocate for policies such as quantitative easing, zero interest rate policies, and forward guidance to stimulate economic growth and reduce unemployment. On the other hand, the opposing author argues that monetary policy can be harmful to economic growth by creating inflationary pressures and increasing the risk of financial instability. They advocate for policies that prioritize price stability, such as inflation targets and interest rate adjustments.

Conclusion:
This edited volume presents a comprehensive exploration of the most pressing and contentious debates in monetary macroeconomics, encompassing a wide range of topics such as budget, trade, taxes, exchange rates, and monetary policy. Each of these topics is approached by two distinguished authors, each presenting a compelling argument for a specific policy stance. Rather than relying on mathematical models or econometric analysis, the book adopts a political economy-inspired approach, emphasizing the interplay of economic forces and social structures. This unique approach, combined with the explicit goal of fostering lively debate, makes this volume an invaluable resource for students of monetary macroeconomics, researchers seeking alternative perspectives, and members of the general public interested in understanding the complex dynamics of the global economy.

Weight: 467g
Dimension: 210 x 148 (mm)
ISBN-13: 9783031112393
Edition number: 1st ed. 2022