John Maynard Keynes predicts in 1930 that growth ends within a century. However, he was not sure if post-growth capitalism was possible. At the moment, the mainstream economic perspective still considers the growth to be a vital policy objective. They believe this kind of thinking is essential to the health of the capitalist economy. Therefore, the concern remains that a capitalist is set to collapse without the growth.
According to The Conversion, a latest published research suggest a different view, which says a post-growth economy could actually be more stable and bring higher wages. It is safe to say that capitalism is indeed unstable. In fact, it is prone to the crisis even during the period of an established growth. Take it from the great financial crash from 2007 to 2008.
Meanwhile, the studies of post-growth economics in the past passionately aimed to find the perfect spot where the economy is steady enough to catch up. Unfortunately, the constant change in theory along the way has failed to address the question whether the end to growth would make the economy more or less stable.
The Conversion revealed a study where a novel mathematical macroeconomic model was developed based on American economist Hyman Minsky theory of financial stability. The said study believed that the financial crisis should be expected in capitalists systems due to the period of economic prosperity, which encourages the borrowers and lender to be more reckless. Sadly, Minsky’s masterpiece was overlooked prior to the 2008 crash. Since then, it received more attention.
Moreover, the model includes a banking sector that charges businesses interest on loans. Through this, the concern that the key feature of capitalism might create the need for growth itself will be addressed. Aside from this, the model also includes the basic labor market and dynamic wages. Check out Papa Survey official website for more inquiries.
The UAE Ministry of Economy achieved the top position in nine economic indices and global competitiveness reports for years 2017 and 2018. The ministry revealed the rankings were part of the efforts to obtain the “Number One Challenge” by UAE federal government. It aims to place the country at the top of its game, the reports, and entire global competitiveness indices.
World Economic Forum in 2017 and 2018 declared the ministry as the first in five tourism indices. The indices related to the following:
- Effectiveness of marketing aimed at tourists
- Governmental travel and tourism priorities
- Sustainability and development of the tourism sector
- Quality of tourism infrastructure and presence of car rental companies
Moreover, the ministry also received three top-spots in the Global Competitiveness Yearbook, which Institute for Administrative Development issued in Switzerland last year. Again, this includes the following:
- Implementation of technology.
- Index of technological cooperation between companies
- Public-private partnerships and the development
They also achieved the top rank in development of economic blocs in the Global Talent Competitiveness Index 2017. INSEAD, also known as European Institute of Business Administration, issued the said title.
Minister of Economy Sultan Bin Saeed Al Mansouri said the ministry commits to keeping work and launching initiatives, as well as the development programs that aim to expand the country’s leadership on main and sub-indices identified in cooperation with the UAE Federal Competitiveness and Statistics Authority (FCSA).
Furthermore, Minister of State for International Cooperation and the Chairperson of The Federal Competitiveness and Statistics Authority (FCSA) Reem Bint Ebrahim Al Hashimy said the UAE marks its leading presence in the global competitive arena. She attributed this success to the unified efforts of federal and local entities working together as one. According to Gulf News, she also acknowledged the Ministry’s working team, which she believes has the major contribution to the country’s progress.
On February 12, a member of the Bank of England’s Monetary Policy Committee said that rapid growth in the UK consumer debt compliments the case for higher interest rates. Former economist Gertjan Vlieghe for the hedge fund Brevan Howard believed that the increase of willingness of the consumers to borrow and spend means that the economy is ready for higher interest rates.
Mr. Vlieghe was once seen as the central bank’s “uber dove”, but first came out in favor of increasing interest rates last autumn. He argued that higher growth in borrowing showed low-interest rates, which provides more support to the economy than when households were saving. The MPC voted to increase interest rates for the first time in ten years last November, raising its benchmark by a quarter of a percentage point to 0.5 percent. Also, the MPC recommended last week that it would raise interest rates earlier and faster than expected to combat rising inflation in the past.
Moreover, he said on Monday “a bit more than” three rate hikes in the next three years would be necessary to get rid of excess demand in the economy. “It really depends on how the economy evolves,” Mr. Vlieghe said. These commentaries happened when he spoke at Resolution Foundation’s event run to mark the think tank’s recent report as it examines the role of debt in modern Britain, Financial Times reported.
Furthermore, Vlieghe pointed to steps the FPC had taken in 2014 and 2016 to constrain risky mortgage lending as examples of the kind of policies that could safeguard financial stability. The foundation’s record revealed two risky pre-crisis kinds of mortgage and it is currently virtual non-existent in the UK. In the end, mortgages’ proportion advanced without any verification of the borrower’s income. It dropped from 46 percent in 2007 to less than one percent in 2017.
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