192 definitions by Abu Yahya

*noun*; a subdivision of economics that focuses on addressing recessions by stimulating supply, rather than demand. During a recession, supply siders recommend cutting taxes rather than increasing government spending.


"Supply side" is in contrast to traditional practitioners of Keynesianism, "demand siders" who believe the main fiscal policy tool for recessions should be increased government spending.

Both supply siders and demand siders believe the government is responsible for formulating effective fiscal policy during recessions.

The most famous advocate of supply side economics was Arthur Laffer.

When Ronald Reagan ...promised to cut taxes ...he claimed tax revenue would go up, not down... as the economy boomed in response to lower rates. Since then, supply side economics ... has become a central tenet of Republican political and economic thinking in the country.

"McCain sticks to Supply Side Economics..." *International Herald Tribune* (24 March 2008)
#classical economics #keynesianism #keynesian #fiscal policy #business cycle #trade cycle
by Abu Yahya March 05, 2009
Political movement in the USA that combines numerous conservative or rightwing movements into a surprisingly cohesive whole. The Conservative Movement (CM) successfully established a dominant role in the Republican Party, and nearly all GOP officials are affiliated with it.

Members of the Conservative Movement are known as "movement conservatives."

In the USA, political parties themselves are very weak and nebulous; historically, they are not bound to any particular ideology or constituency. Instead, parties take their ideological guidance from movements, which endorse candidates based on their commitment to the goals of that particular movement. Movements also marshall fundraising and organizing networks, binding candidates to elected officials and to affiliated thinktanks. The CM is distinguished because it captured an entire party, and tied it to an emphatically rightwing ideology.

The three components of the CM are the neoconservatives (neocons), religious right (theocons, "Moral Majority"), and the AEI-affiliated business conservatives (money cons).
More important, conservatives who embraced conspiratorial thinking shared a sufficient set of complaints, assumptions, and common enemies that united them with their more "respectable" cohorts in one movement. They swam in the same ideological waters as the broader conservative movement... and. above all, participated in building one mobilization out of their common grievances against American liberalism.

Lisa McGirr, *Suburban Warriors* (2002)
#project for a new american century #american enterprise institute #heritage foundation #moral majority #oligarchy #corporate control #theocracy #misogyny #homophobia #neoconservative
by Abu Yahya May 29, 2009
*noun*; a school of economic thought prevalent after World War 2; around 1980, Keynesianism was supposedly superseded by monetarism, and then by the rational expectations hypothesis. Theory is named for John M. Keynes (1881-1946), who argued against the then-mainstream view that the economy was "self correcting." Keynes' book introducing his economic theory was The General Theory of Employment, Interest, and Money (1936).


*Basic Concept*
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The basic concept of Keynesianism is that each economy has a level of aggregate demand, which does not respond to price or income levels in the same way that classical economics says it should. Rising income, for example, *does not* lead to a matching increase in consumption or business investment. Business investment is driven by investment opportunity, not {only] by interest rates. Savings is driven by liquidity preference, not only by interest rates.

Keynes suggested that, for any economy, there was a marginal propensity to consume that was less than one. Hence, if the national income rose by 10%, consumption would rise by something less than 10%. This would lead to some production not being consumed, waste, and unemployment.

*What Keynesianism Says We Should Do*
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In 1936, when Keynes wrote *The General Theory*, most of the world was suffering from the Great Depression. Keynes recommended that the national government stimulation aggregate demand through a policy of deficit stimulus. In other words, the country should create adequate levels of aggregate demand by spending more than it took in as taxes (fiscal policy).

Also, Keynesianism held that aggregate demand could be stimulated *up to a point* by lowering interest rates (monetary policy).

*Application*
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In the USA and other large industrial countries, fiscal and monetary policy has been attempted often. After 1980, the Federal Reserve chair (Paul Volcker) was a monetarist, who claimed to reject Keynesianism. Nobel laureates in economics almost unanimously attacked Keynesianism as outmoded and wrong-headed, but governments continue to use fiscal stimulus and interest rate cuts in response to recessions.
Keynesianism held out the prospect that the state could reconcile the private ownership of the means of production with democratic management of the economy.

Adam Przeworski, *Capitalism and social democracy* (1986)
#keynesian #fiscal policy #monetary policy #phillips curve #economics #business cycle #mundell-fleming #recession #depression
by Abu Yahya March 03, 2009
an overwrought public anxiety that evil things are afoot. The term seems to have been coined by Jock Young in 1971.* The most obvious example of an ancient moral panic is the blood libel.

Other famous examples of moral panics include the 1955 Boise scandal, in which three cases of lewd conduct between men and teenaged boys, plus a noxious editorial, triggered a general war against homosexual men. In the early 1930's, the Federal Bureau of Narcotics (FBN) launched a public relations effort to have federal laws passed banning the use of marijuana; it was driven by a jurisdictional struggle between Harry Anslinger (FBN) and J. Edgar Hoover (FBI). The campaign was a success; it not only achieved the desired legislation, but created a wave of mass hysteria about the "threat" of marijuana.

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* Goode & Ben-Yehuda, *Moral Panics* (1994), p.12.
In the movie *Quadrophenia*, set in Brighton, UK in the late 1960's, a recurring theme was the contemporary moral panic over the clash between Mods and Rockers.
#sociology #mass hysteria #popular delusions #panic #madness of crowds
by Abu Yahya February 14, 2009
A problem faced by a person with specialized expertise in any area, in which the implications of the opinion are unpopular and likely to be rejected by those who need that expertise. For example, economists may be likely to know that, in some cases, a "market solution" is inherently impossible, but proposing an alternative is an exercise not merely in futility, but career suicide among those who employ economists. It arises because the expert knows more about the field than her employers.
The statistician was asked by his boss to make a case for risk homeostasis, but knowing better, he faced an expert's dilemma: telling the truth would get him tarred as a 'socialist.'
#manager #expertise #career #academe #consultant #professional ethics
by abu yahya June 23, 2008
(FINANCE) a contractual obligation to buy or sell a fixed amount of a thing at a set price, at a specific time in the future.

Same as a futures contract.
SALES AGENT: I have this awesome product made in the USA I want to sell in Europe. It's cheap now, but what if the euro goes down against the dollar? I could lose a lot of money on inventory.

BROKER: No problem, just buy a future for the amount of US dollars you'll need to pay your suppliers.

SALES AGENT: You mean, a futures contract for dollars?

BROKER: Yes, a euro-pegged future for dollars. When the contract comes due, you pay the euros, they pay you the dollars, and BOOM! You're good to go. No risk.
#futures #future contract #forward market #forex #commodities market
by Abu Yahya April 04, 2010
IMF
(ECONOMICS) international bank created after World War 2 to coordinate currency stabilization. Main policy tool consists of lending money to central bank of countries facing a liquidity crisis.

In some cases, as when a member government is insolvent, the IMF will impose a structural adjustment program (SAP) requiring the government to jettison programs it has to serve the poor. For this reason, the IMF is often harshly criticized.
It is often said that the IMF makes economic crises worse by imposing the same austerity program everywhere, thereby further reducing a member state's ability to pay its sovereign debt.
#sovereign debt #liquidity crisis #bretton woods #bretton woods institutions #world bank #structural adjustment program
by Abu Yahya May 04, 2010
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