Money and Finance in the Macro-Economic Process

Prize Lecture to the memory of Alfred Nobel, December 8, 1981Macro-finance

The Reagan economic plan--supply-side, budget and inflation

Inflation (Finance) ; Supply-side economics ; Budget

Macroeconomic Strategy in Wartime

In 2001-02 the United States has been hit by two quite different shocks, terrorism and recession. As usual in time of war, national defense is the highest priority for use of the country's resources. Although the opportunities for international warfare are limited, the challenges to the homeland are virtually unlimited. The president's fiscal year 2003 budget includes $48 billion additional for the military and$38 billion additional for homeland defense. Given the gravity of the threat, it is hard to understand why new expenditures are not undertaken as soon as and as large as possible. This would also be timely for stimulus to the economy, more effective than tax cuts and other proposals - with the nation in peril, the country is ready to make sacrifices, not to enjoy further tax reductions. Pearl Harbor in December 1941 occurred with the economy not yet recovered from the Great Depression, with unemployment still 10 per cent. Expenditures for war were increased sharply and rapidly, and full employment was restored in 1943.Fiscal, War, Recession, Stimulus, Tax, Deficit

Monetary Policy in 1974 and Beyond

macroeconomics, monetary policy, 1974

A Proposal for Monetary Reform

Exchange rates fluctuate very rapidly, in comparison to the prices of goods and labor. An internationally uniform tax on all spot conversions of one currency into another would reduce these fluctuations. Foreign exchange markets focus strongly on the short run, but this tax would reduce these fluctuations by increasing the cost of such transactions. It throws some sand in the wheels of short-term speculation while increasing the relative advantage of longer-term international investment flows. [Ed.]Monetary; Policy; Tax; Taxes

How can monetary policy be improved?

Monetary policy - United States ; Monetary policy ; Banks and banking, Central

Macroeconomic Effects of Selective Public Employment and Wage Subsidies

macroeconomics, wage subsidies, selective public employment

Public problems: private solutions? Short-term contracting of inpatient hospital care

Executive summary Public patients are routinely being treated in Australian private hospitals. Some jurisdictions have large-scale, planned programs where private or not-for-profit hospitals are contracted by the public sector to treat public inpatients (for example, Queensland’s Surgery Connect program). Often, however, ‘contracting’ is done on an ad hoc or short-term basis where private hospitals are asked, at relatively short notice, to treat public patients in order to relieve pressure on public hospitals. The findings from this project stem from interviews with 24 senior health executives across Australia. Interviewees were public and private hospital executives and government bureaucrats. All had experience in hospital contracting. The focus of the interviews was their experiences with contracting: why and how contracting arrangements were developed, what worked, what didn’t, and what changes to policy and practice were made over time. Interviewees were also asked about their views on the merits of contracting, whether it should be done more often, and if so, what needed to be done to make sure it worked well. While the views of these senior health executives on this topic were diverse, several clear messages emerged that are pertinent to policymakers working in this area. They are: The way we are doing contracting currently in Australia tends to be ad hoc, and this is enormously frustrating to hospital executives in both the public and private sectors. Without greater certainty about the type and volume of patients to be treated, and how long contract arrangements will remain in place, it is unlikely that the full benefits of contracting (such as more timely access to care for public patients, and the more efficient use of resources) will be realised. Some private hospital executives are unconvinced of the merits of contracting because they believe it reduces the value of private health insurance and the incentives to develop other private sources of revenue. Their views on contracting raise broader policy questions about the relative roles of public and private hospitals in Australia. These questions need to be addressed if governments intend to expand to use of contracting in the hospital sector. State and territory governments (referred to as states) need to develop clear and consistent policies on contracting in the hospital sector. This includes developing fee schedules for different types of services and processes for establishing and negotiating contracts with the private sector. At the same time state-level policies need to be flexible enough to allow local (or regional) health services to make decisions about when, where and how contracting is done in their area. Without significant local level involvement in decision-making, it is difficult to ensure that contracting arrangements between local public and private hospitals (which tend to be more convenient for patients) will work in the longer-term. Hospital executives have suggested numerous options for reform that have the potential to improve the way we do contracting in Australia. They range from small-scale reforms, such as contracting over longer time-periods and setting up brokers to facilitate contracting, to larger-scale ones such as establishing contestable funding pools; co-location of public and private hospitals; public-private partnerships; and implementing new hospital financing models (such as Medicare Select). These options, and more, need to be given serious consideration by policymakers if they are to improve the efficiency and effectiveness of our hospital systems