USA GFC Flashcards
Why according to McCarty 2012 was the US response so expansionary?
Home of the crisis - needed a strong response
Lower economic restraints
Obama election delayed things so it meant that everything happened at once
What was contrary to what many would expect?
the USA actually one of the biggest advocates of spending to avoid serious crisis
show the positive statistics on discretionary spending (fiscal stimulus per one % of GDP contraction)
USA 1980s = 0.47 up to 1.39
how much was the two year bail out programme under Obama?
800 billion
Similar to Spain, the US cut what?
individual income taxes
What did it do that was the same as
Sweden, both government and opposition came to the agreement of maintaining public sector employment via large transfers from central to municipal governments
- even though the USA federal bank did transfer money to regional authorities employment still dropped
how much in assistance was given to GM, Chrysler and Ford
$80 billion
two years after the recession unemployment still stood at ?
above 9%
what was the strategy in 2008?
the federal government ran large but temporary deficits to reduce interest rates to almost zero and by using conventional money policy
what is labour participation like for younger people?
labour participation rates for 25s and 54s has fallen from the highs of the late 80s / early 90s
