1. America's New Era.
- Author
-
Godley, Wynne and Martin, Bill
- Subjects
UNITED States economy ,ECONOMIC development ,STOCK exchanges - Abstract
In this article, Wynne Godley and Bill Martin examine the growing imbalances in the American economy and the threat they pose to continued growth. They argue that America's expansion has been, and, on present policies, will continue to be overly reliant on a rising stock market and falling private net saving. This process is unsustainable. Other countries which have experienced asset price bubbles and abnormally low and falling private saving have all been severely damaged when the process unwound with net savings rising back to and then above their historic norm. Faced with that type of shock, the same fate could easily await the United States unless its policy toward the dollar and the budget responded in a quite remarkable fashion. [ABSTRACT FROM AUTHOR]
- Published
- 1999
- Full Text
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