How central banks contributed to the financial crisis. Even before the crisis, there were some who stressed that monetary policy should keep an eye on asset bubbles and the growth of credit.
This column argues that the policy of inflation targeting, used widely in the 1990s and 2000s, did indeed lead to excessive credit growth that eventually bred financial instability. As numerous studies over the last two decades have shown, interest rate policies of a large number of central banks can be explained by the so-called Taylor Rule. According to this rule, which is consistent with inflation targeting, the policy rate is determined by a neutral real rate, the target inflation rate, the output gap, and the deviation of inflation from the target (or expected) rate. In this formula, the output gap can be interpreted as a leading indicator for inflation, as suggested by an augmented Phillips-curve inflation model, where the deviation of actual inflation from the target has the character of an error-correction term.
Adam Smith Institute. Pensionlawyerblog. Pensions Industry Trends & Legislation. LIGHTSTUNNEL. Peak Employment. What is ‘Peak Employment’ ?
Peak employment is the theory that due to factors such as efficiency, driven by technological innovation, and demand, developed economies may have already passed beyond the highest point of employment and that from this point onwards employment will continue to fall and unemployment inexorably rise causing increased social tension. There is plenty of evidence to support this theory but before looking at the situation now it would be wise to look first at a similar period of dramatic technological change two hundred years ago, and try and understand why the Luddites, who opposed industrial progess were wrong and take it as a small warning against making similar mistakes.
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On a long enough timeline, the survival rate for everyone drops to zero.