Keywords
AD-AS model
IS-LM model
US policies
Submitted : 2023-12-30
Accepted : 2024-01-14
Published : 2024-01-29
Abstract
The US has a long history of combating global pandemics, leading to the development of various macropolicies over the years. These commonalities serve as a guide not only for academic researchers but also for economicagencies. Utilizing the IS-LM model, this essay elucidates the phenomenon of post-pandemic policy inertia and forecaststhe future trajectory of policies in the aftermath of COVID-19. Significantly, the essay thoroughly examines the challengesconfronting current US macro-policies and offers valuable reference points for improvement. Its contribution lies inemphasizing that policies implemented by US governments may prioritize the predictability and certainty of the economyover its recovery, providing insights relevant to a diverse range of stakeholders. Furthermore, the concept of policy inertiaintroduced in the essay can serve as a foundation for subsequent academic exploration and policy analysis, contributing tothe expansion of knowledge in the field.
References
U.S. International Trade in Goods and Services, June 2023, 2023, Bureau of Economic Analysis, viewed November 11, 2023, https://www.bea.gov/news/2023/us-international-trade-goods-and-services-june-2023#:~:text=The%20U.S.%20Census%20Bureau%20and,%2468.3%20billion%20in%20May%2C%20revised.
?ahin A, Tasci M, Yan J, 2021, Unemployment in the Time of COVID-19: A Flow-Based Approach to Real-Time Unemployment Projections. National Bureau of Economic Research, 2021: 28445.
Taubenberger JK, Morens DM, 2006, 1918 Influenza: The Mother of All Pandemics. Emerging Infectious Diseases, 12(1): 15–22.
Centers for Disease Control and Prevention, 2010, Swine Influenza A (H1N1) Infection in Two Children—Southern California, March–April 2009. Morbidity and Mortality Weekly Report, 58(15): 400–402.
Wu Z, McGoogan JM, 2020, Characteristics of and Important Lessons from the Coronavirus Disease 2019 (COVID-19) Outbreak in China: Summary of a Report of 72,314 Cases from the Chinese Center for Disease Control and Prevention. JAMA, 323(13): 1239–1242.
Volcker PA, 1989, The Contributions and Limitations of Monetary Analysis. Federal Reserve Bank of New York Quarterly Review, 1989: 38–44. https://www.newyorkfed.org/medialibrary/media/aboutthefed/SpecialIssue75thAnniversary.pdf.
Niskanen WA, 1994, Bureaucracy and Public Economics, Edward Elgar Publishing, Cheltenham.
Taylor JB, 1993, Discretion Versus Policy Rules in Practice. Carnegie-Rochester Conference Series on Public Policy, 39(1): 195–214.
Bernanke BS, Gertler M, 1995, Inside the Black Box: The Credit Channel of Monetary Policy Transmission. Journal of Economic Perspectives, 9(4): 27–48.
Romer C, Romer D, 2013, The Missing Transmission Mechanism in the Monetary Explanation of the Great Depression. The American Economic Review, 103(3): 66–72.
Roberts PC, 1984, The Supply-Side Revolution: An Insider’s Account of Policymaking in Washington, Harvard University Press, Cambridge.
Acemoglu D, Autor D, 2011, Skills, Tasks and Technologies: Implications for Employment and Earnings. Handbook of Labor Economics, 4(1): 1043–1171.
Goldin C, Katz LF, 2008, The Race Between Education and Technology, Harvard University Press, Cambridge.
Glaeser EL, Gottlieb JD, 2008, The Economics of Place-Making Policies. Brookings Papers on Economic Activity, 2008(1): 155–253.
Svensson LE, 1997, Inflation Forecast Targeting: Implementing and Monitoring Inflation Targets. European Economic Review, 41(6): 1111–1146.
Orphanides A, Williams JC, 2005, Inflation Scares and Forecast-Based Monetary Policy. The Review of Economics and Statistics, 87(4): 715–727.
Piketty T, Saez E, 2014, Inequality in the long run. Science, 344(6186): 838–843.
Autor DH, Katz LF, Kearney MS, 2008, Trends in US Wage Inequality: Revising the Revisionists. The Review of Economics and Statistics, 90(2): 300–323.
Dynarski S, 2015, Making College Cheaper by Increasing Aid: Evidence from Randomized Trials. The Journal of Economic Perspectives, 29(2): 95–126.
Jacobs J, 1961, The Death and Life of Great American Cities, Vintage Books, New York.
Gilderbloom JI, Riggs W, 2005, Measuring Success: Evaluating Comprehensive Community Initiatives for Neighborhood Change. Housing Policy Debate, 16(1): 83–114.
Rosa F, Gonçalves HS, 2019, Small Business Attraction and Neighborhood Revitalization: Evidence from Portugal.Journal of Urban Affairs, 41(7): 901–917.
Handy S, Clifton K, 2001, Local Shopping as a Strategy for Reducing Automobile Travel. Transportation Research Part D: Transport and Environment, 6(2): 141–155.
Healey P, 2003, Collaborative Planning: Shaping Places in Fragmented Societies (2nd Edition) Palgrave, Macmillan.