{"id":11517,"date":"2015-02-01T19:52:47","date_gmt":"2015-02-02T00:52:47","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=11517"},"modified":"2015-02-01T19:52:47","modified_gmt":"2015-02-02T00:52:47","slug":"an-unconventional-truth-by-nouriel-roubini-project-syndicate","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2015\/02\/01\/an-unconventional-truth-by-nouriel-roubini-project-syndicate\/","title":{"rendered":"An Unconventional Truth by Nouriel Roubini &#8211; Project Syndicate"},"content":{"rendered":"<p>Nouriel Roubini argues for increased infrastructure investment to accompany monetary easing, else the benefits of the latter will not last:<\/p>\n<blockquote><p>Simply put, we live in a world in which there is too much supply and too little demand. The result is persistent disinflationary, if not deflationary, pressure, despite aggressive monetary easing.<\/p>\n<p>The inability of unconventional monetary policies to prevent outright deflation partly reflects the fact that such policies seek to weaken the currency, thereby improving net exports and increasing inflation. This, however, is a zero-sum game that merely exports deflation and recession to other economies.<\/p>\n<p>Perhaps more important has been a profound mismatch with fiscal policy. To be effective, monetary stimulus needs to be accompanied by temporary fiscal stimulus, which is now lacking in all major economies. Indeed, the eurozone, the UK, the US, and Japan are all pursuing varying degrees of fiscal austerity and consolidation.<\/p>\n<p>Even the International Monetary Fund has correctly pointed out that part of the solution for a world with too much supply and too little demand needs to be public investment in infrastructure, which is lacking \u2013 or crumbling \u2013 in most advanced economies and emerging markets (with the exception of China). With long-term interest rates close to zero in most advanced economies (and in some cases even negative), the case for infrastructure spending is indeed compelling. But a variety of political constraints \u2013 particularly the fact that fiscally strapped economies slash capital spending before cutting public-sector wages, subsidies, and other current spending \u2013 are holding back the needed infrastructure boom.<\/p>\n<p>All of this adds up to a recipe for continued slow growth, secular stagnation, disinflation, and even deflation. That is why, in the absence of appropriate fiscal policies to address insufficient aggregate demand, unconventional monetary policies will remain a central feature of the macroeconomic landscape.<\/p><\/blockquote>\n<p>Again, I add the warning that infrastructure investment must be in productive assets, that generate market related returns. Otherwise we are merely swapping one set of problems (a shortfall in aggregate demand) for another: high public debt without the revenue to service or repay it.<\/p>\n<p>Read more at <a href='http:\/\/www.project-syndicate.org\/commentary\/unconventional-monetary-policies-and-fiscal-stimulus-by-nouriel-roubini-2015-02'>An Unconventional Truth by Nouriel Roubini &#8211; Project Syndicate<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nouriel Roubini argues for increased infrastructure investment to accompany monetary easing, else the benefits of the latter will not last: Simply put, we live in a world in which there is too much supply and too little demand. The result is persistent disinflationary, if not deflationary, pressure, despite aggressive monetary easing. The inability of unconventional &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2015\/02\/01\/an-unconventional-truth-by-nouriel-roubini-project-syndicate\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;An Unconventional Truth by Nouriel Roubini &#8211; Project Syndicate&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31,13,15],"tags":[990,1416,1840,2344],"class_list":["post-11517","post","type-post","status-publish","format-standard","hentry","category-the-fed-banks-interest-rates","category-inflation-economy","category-investment-infrastructure","tag-deflation","tag-fiscal-stimulus","tag-infrastructure-investment","tag-monetary-easing"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>An Unconventional Truth by Nouriel Roubini - Project Syndicate - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"An Unconventional Truth by Nouriel Roubini - Project Syndicate - the patient investor\" \/>\n<meta property=\"og:description\" content=\"Nouriel Roubini argues for increased infrastructure investment to accompany monetary easing, else the benefits of the latter will not last: Simply put, we live in a world in which there is too much supply and too little demand. The result is persistent disinflationary, if not deflationary, pressure, despite aggressive monetary easing. 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Wrong-headed policies during the first Great Depression led to trade and currency wars,\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6461,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/12\/12\/dangers-of-quantiative-easing-may-be-political-more-than-technical\/","url_meta":{"origin":11517,"position":2},"title":"Dangers of quantiative easing may be political more than technical","author":"Colin Twiggs","date":"December 12, 2012","format":false,"excerpt":"Glenn Stevens, governor of the Reserve Bank of Australia, in an address to the Bank of Thailand today commented on the dangers facing central bank monetary policy: For the major countries a further dimension to what is happening is the blurring of the distinction between monetary and fiscal policy. Granted,\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":39792,"url":"https:\/\/thepatientinvestor.com\/index.php\/2022\/12\/21\/nouriel-roubini-we-are-in-a-debt-trap\/","url_meta":{"origin":11517,"position":3},"title":"Nouriel Roubini: &#8220;We are in a debt trap&#8221;","author":"Colin Twiggs","date":"December 21, 2022","format":false,"excerpt":"https:\/\/youtu.be\/ADh6QTp8798 Nouriel Roubini was mocked by the media -- who christened him \"Dr Doom\" -- because of his prescient warnings ahead of the 2008 global financial crisis. He has now published a book identifying 10 mega-threats to the global economy. First and foremost is the debt trap. Private and public\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/img.youtube.com\/vi\/ADh6QTp8798\/0.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":21423,"url":"https:\/\/thepatientinvestor.com\/index.php\/2020\/09\/07\/gold-inflation-the-trillion-question\/","url_meta":{"origin":11517,"position":4},"title":"Gold &#038; Inflation: The trillion $ question","author":"Colin Twiggs","date":"September 7, 2020","format":false,"excerpt":"A plot of real corporate bond yields highlights Fed monetary policy over the last century. Real (Aaa) bond yields above 5% indicate monetary tightening; below 2% indicate easing; while negative rates signal abandonment of monetary stability, high inflation and debasement of the Dollar. Significant eras of monetary policy are marked\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":21158,"url":"https:\/\/thepatientinvestor.com\/index.php\/2020\/08\/03\/australia-its-the-demand-side-stupid\/","url_meta":{"origin":11517,"position":5},"title":"Australia: It&#8217;s the demand side, stupid","author":"Colin Twiggs","date":"August 3, 2020","format":false,"excerpt":"What Australia and most developed economies need is more government spending on productive infrastructure, to make up for the hole in demand caused by the coronavirus recession. Low inflation clearly signals that the underlying problem is falling demand (consumer spending and business investment) and not deficiencies on the supply side.\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/11517","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=11517"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/11517\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=11517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=11517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=11517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}