This paper suggests that the dollar is not threatened as the hegemonic international currency, and that most analysts are incapable of understanding the resilience of the dollar, not only because they ignore the theories of monetary hegemonic stability or what, more recently, has been termed the geography of money; but also as a result of an incomplete understanding of what a monetary hegemon does. The hegemon is not required to maintain credible macroeconomic policies (i.e., fiscally contractionary policies to maintain the value of the currency), but rather to provide an asset free of the risk of default. It is argued that the current crisis in Europe illustrates why the euro is not a real contender for hegemony in the near future.
This paper examines Federal Reserve Chairman Ben Bernanke’s recipe for deflation fighting and the specific policy actions he took in the aftermath of the 2008 financial crisis. Both in his academic and in his policy work, Bernanke has made the case that monetary policy is able to stem deflationary forces largely because of its “fiscal components,” and that governments like those in the United States or Japan face no constraints in financing these fiscal components. On the other hand, he has recently expressed strong concerns about the size of the federal budget deficit, calling for its reversal in the name of financial sustainability. The paper argues that these positions are fundamentally at odds with each other, and resolves the paradox by arguing on theoretical and technical grounds that there are no fundamental differences in financing conventional government spending programs and what Bernanke considers to be the fiscal components of monetary policy.
Two issues may have a tremendous impact on the adequacy of retirement income for today's workers: the growth of 401(k) pension plans and the possible privatization of Social Security. Workers are becoming increasingly responsible for the adequacy of their retirement income by determining how their retirement savings are invested. This paper examines the investment choices of workers covered by a defined contribution pension plan with responsibility for investments, specifically incorporating self-selection into DC pension plans. The results suggest that (1) current DC plan participants tend to be more aggressive investors than the general work force would be; (2) workers in certain demographic groups tend to invest their pension assets more conservatively than others; and (3) selection is present but appears to be economically unimportant.
This working paper continues earlier efforts to compare the experiences of today's second-generation Mexican Americans with those of second-generation members of major immigrant groups of a century ago. Here the focus is on intermarriage. Contemporary data comes from 1998-2001 CPS data sets and historical data from the IPUMS data sets for 1920 and 1960. As in earlier papers, the precise definition of the relevant second-generation members is an important dimension of the work. In this paper the definition of outmarriage is important as well. The major conclusion is that outmarriage of second-generation Mexican Americans may seem low in absolute terms, but is comparable to the outmarriage rates for second-generation Italians at roughly similar stages of that group's adjustment to American society. Appendices take up questions such as evidence on the ethnic composition of the mixed second generation (native-born of mixed parentage) as revealed in earlier CPS data sets.
This paper reconsiders the case for the use of fiscal policy based on a "functional finance" approach that advocates the use of fiscal policy to secure high levels of demand in the context of private aggregate demand, which would otherwise be too low. This "functional finance" view means that any budget deficit should be seen as a response to the perceived excess of private savings over investment at the desired level of economic activity. The paper outlines the "functional finance" approach and its relationship with fiscal policy. It then considers the three lines of argument that have been advanced against fiscal policy on the grounds of "crowding out." These lines are based on the response of interest rates, the supply-side equilibrium, and Ricardian equivalence. The paper advances the view that the arguments, which have been deployed against fiscal policy to the effect that it does not raise the level of economic activity, do not apply when a "functional finance" view of fiscal policy is adopted. A section on the intertermporal budget constraint considers whether this constraint rules out budget deficits, and concludes that in general it does not.
The nature of inter-governmental relations between state and governments does not reflect from federalism. It is more or less master –servant relations in which the local government subsists at the mercy of the state government i.e it is the giant Lilliputian relationship, resulting in muzzling the course that thread the corn’’. A few discussions on the implications of the relationship between the local state governments will shade light on the problems associated with both the constitutional provisions and the state creation of the local government system in Nigeria federalism. The 1999 constitution unfortunately had some confusion, lapses, ambiguities and intrigues which directly or indirectly affect the performance of local government. Most of the crisis of inter-governmental relations bedeviling the local government effectiveness is the aftermath of the inherent loopholes and ambiguities in the constitution.
To support the argument that the constitution and federal government have helped in creating confusion as to who is responsible for local government existence in Nigeria. Bello man cited in Onah (2004) posited that the federal government resulted to clearly spelling out basis of local government became definitely super ordinate. The federal government of Nigeria due to the prevailing situation of the local government in 1998, adopted comprehensive measures which were aimed at radically reforming the structure, finances and administration of local governments to make them viable and effectiveness, Aikhomu, as capture in Okpata (2008), concluded the argument.
Coercive and Cooperative Federalism
Concerning the relationship between the state of Texas and the federal government, Governor Perry believes that the state is rather autonomous based on the programs it implements on its own basis. Programs such as the Unemployment Insurance scheme have undergone successful implementation within Texas even though the federal government attempted to intervene via its modus operandi of coercive federalism. In addition to this, Texas exercises an independent stance towards the overall government in relation to the demerits that federal funds impose on state citizens. Accordingly, the provision of federal funds to states usually occurs as long as the governments adhere to the federal goals dictated. However, such finances only complicate the lives of civilians. For instance, the application of energy and health policies such as Obamacare, which constitute some of the aims of the federal government, may lead to increase in taxes considerably which bears a negative effect on their financial stability (“The Amendment”).
Even though both aspects are policies of a similar government, coercive and cooperative federalism are disparate. Undeniably, coercive federalism aims at exercising intrusion in states in order for them to comply with federal objectives without the provision of compensation. On the other hand, cooperative federalism allows the supply of grants in order to assist in endorsing states to cooperate towards the completion of the particular goals. Indeed, Perry describes the operation of the federal government as coercive federalism. One example is the issue of Obamacare (“Rick Perry Discusses the 10th Amendment and Healthcare”). Accordingly, the federal government seems to force each state to implement the policy without considering the negative implications it will pose in states such as Texas. Furthermore, Perry asserts that the federal government does not have the power to coerce states into performing their own bidding due to the Tenth Amendment.
Effective inter-governmental relations will be result oriented if the relevant political actors will be willing to allow their actions to be guided by he letters and spirit of constitution. The absence of this indeed, has always been the problem of state local government administration. This has informed the manipulation and cynical intrigues of state and local government relations.
For effective state-local government relations, it must involve a pattern of cooperative relationship between the two levels of governments within Nigeria democratic federationlism. This pattern of relationship must need assume vertical and horizontal form to promote harmony among the levels rather than competitive federalism, which engenders jurisdictional conflict. This is because the key term in the study of inter-governmental relations is co-operations coordination or conflict of jurisdiction.
Research federalism using your textbook, the Argosy University online library resources, and the Internet. Write a paper on federalism. Structure your paper as follows:
Define federalism. Explain three advantages of federalism. Explain three disadvantages of federalism. Identify and describe at least two ways in which American federalism has changed since the ratification of the Constitution. Discuss one advantage or disadvantage of federalism most relevant to you. Describe the relationship between contemporary politics and trends in the size and power of the federal government.