The Holy Grail of Macro Economics: Lessons from Japan's Great Recession
Author: Richard C Koo
Japan's "Great Recession" lasted from approximately 1992—2007 and finally provided the economics profession with the necessary background to understand what actually happened during the US recession of the 1930s. The discoveries made, however, are so far-reaching that a large portion of economics literature will have to be modified to accommodate another half to the macro economic spectrum of possibilities that conventional theorists have overlooked.
In particular, Japan's Great Recession showed that when faced with a massive fall in asset prices, companies typically jettison the conventional goal of profit maximization and move to minimize debt in order to restore their credit ratings. This shift in corporate priority, however, has huge theoretical as well as practical implications and opens up a whole new field of study. For example, the new insight can explain fully the precise mechanism of prolonged depression and liquidity trap which conventional economics—based on corporate profit maximization—has so far failed to offer as a convincing explanation.
The author developed the idea of yin and yang business cycles where the conventional world of profit maximization is the yang and the world of balance sheet recession, where companies are minimizing debt, is the yin. Once so divided, many varied theories developed in macro economics since the 1930s can be nicely categorized into a single comprehensive theory, i.e., the Holy Grail of macro economics
The policy implication of this new discovery is immense in that the conventional aversion to fiscal policy in favor of monetary policy will have to be completely reversed when the economy isin the yin phase.
The theoretical implications are also immense in the sense that the economics profession will no longer have to rely so much on various rigidities to explain recessions that have become the standard practice within the so-called New Keynesian economics of the last twenty years.
Book review: Chinese Cuisine Made Simple or Good Housekeeping 100 Best One Dish Meals
Introduction to Emergency Management
Author: George Haddow
Introduction to Emergency Management, Third Edition provides a comprehensive update of this foundational text on the background components and systems involved in the management of disasters and other emergencies. The book details current practices, strategies, and the key players involved in emergency management, especially in the U.S. but also around the world. Expanded coverage of local and state issues, particularly as they need to interact and work with FEMA and other federal agencies, adds value to public administrators locally tasked with protecting their community. The Third Edition is fully updated to cover FEMA's continually changing role within the Department of Homeland Security and the impact and aftermath of Hurricane Katrina. Lessons including proper planning, mitigation, in-crisis decisions, evacuation, and recovery shed light on how managers can avoid devastating breakdowns in communication and leadership during an event. Not only terrorist events but many such natural disasters require similar preparedess planning. Emergency planning is vital to the security of entire communities and thus an essential focus for research, planning and training. This new edition continues in its tradition of serving as an essential resource for students and young professionals in the discipline of Emergency Management.
* Case examples provide current specific examples of disasters and how they were managed
* Extensive focus on Katrina includes full coverage of events leading up to the crisis, response and recovery issues, lessons learned, and an event timeline
* Written by 2 former FEMA senior officials who draw on first-hand experience in day-to-day emergencymanagement operations
Table of Contents:
1. The Historical Context of Emergency Management
2. Natural and Technological Hazards and Risk Assessment
3. The Disciplines of Emergency Management: Mitigation
4. The Disciplines of Emergency Management: Response
5. The Disciplines of Emergency Management: Recovery
6. The Disciplines of Emergency Management: Preparedness
7. The Disciplines of Emergency Management: Communications
8. International Disaster Management
9. Emergency Management and the New Terrorist Threat
10. The Future of Emergency Management Katrina: A Case Study Appendix: Acronyms
No comments:
Post a Comment