Ten years after the 2008 financial recession, the federal government is ill-prepared to defend itself in opposition to the following financial downturn. Rates of interest stay low, partisanship stays intractable, and the federal debt is rising at an unprecedented fee. These elements will hamstring conventional financial and monetary stimulus.
In his new guide, “Legislation and Macroeconomics,” Yale Legislation Professor Yair Listokin argues that we are able to reply extra shortly to the following financial disaster by deploying a coverage method whose confirmed success is just too not often acknowledged: regulation. He proposes that we take severely the concept that regulation can perform as a macroeconomic device, able to stimulating demand when wanted and relieving demand when it threatens to overheat economies. And although historical past has demonstrated that regulation is an unwieldy instrument of macroeconomic coverage, Listokin argues that below sure circumstances it affords a significant different to the financial and monetary coverage instruments.
On Tuesday, September 10, at an City-money and finance Tax Coverage Heart occasion, Listokin will current the important thing findings of his analysis, and panelists will deepen the dialogue by addressing the next questions:
What function does the regulation play in stimulating mixture demand?
How can legal guidelines and laws complement conventional fiscal and financial coverage approaches to stabilizing the enterprise cycle?
Can laws act as an efficient different to fiscal and financial coverage throughout financial downturn?
Which laws ought to lawmakers implement to fight financial shocks?