Failure Of Economic Policy Research Articles

The 3 Decades Global Financial Policy Failure in Housing Market, Runaway Home Prices, Today’s Growing Homeless Crisis: Eddison Walters Real Estate Housing Technology Structural Change Transformational Theory

Failure to address technological-driven structural changes in the real estate market that began three decades ago has caused runaway home prices that developed countries are experiencing today. The real estate crash that preceded the Global Financial Crisis, and the entire Global Financial Crisis resulted from the panic that was created about the rapid increase in home prices that was falsely labeled a real estate bubble by the media which was quickly adapted by policymakers. Policymakers and the media blamed greedy mortgage brokers for the rapid increase in home prices, accusing mortgage brokers of providing mortgages to too many people for homes that the borrowers could not afford. It turns out that the media and policymakers were completely wrong when mortgage brokers were falsely blamed for creating a real estate bubble because a real estate bubble never existed. The true cause of the rapid increase in home prices was the early stages of a real estate boom from technological-driven structural changes in the real estate market. Failure to address structural changes in the real estate housing market which started three decades ago, has resulted in runaway home prices in the United States and developed countries around the world. As a result of the failure widespread economic hardship from homelessness is a significant risk as working families find themselves priced out of the housing market. Three decades of economic policy failures and the mismanagement of the housing sector have resulted in a looming housing crisis that continues to increase as developed countries face runaway home prices. Policymakers throughout developed countries eagerly accepted the media-driven misinformation of a real estate bubble without any evidence presented supporting the narrative. The failure of policymakers to gain an understanding of factors that have been driving the rapid increase in home prices which began three decades ago, resulted in the real estate crash, Global Financial Crisis, and Great Recession. Much of the economic hardship and the looming housing crisis facing working families today could have been avoided. For many working American families, the prospect of home ownership no longer exists due to skyrocketing home prices. The looming homeless crisis facing the developed world today is the direct result of economic policy failures that have ignored the structural changes in the housing market for three decades. The move from print media real estate listings to online real estate listings and the adaptation of online mortgage loan applications along with automated mortgage underwriting between 1995 and 1999, exponentially increased the quantity of inventory needed in the housing market of developed countries. The shift in the demand curve for housing structurally changed the housing market in developed countries resulting in the complete transformation that saw the demand for housing skyrocket by 2000. New homebuyers who previously only had access to local housing markets before the transformation of the housing market began in 1995, had full access to homes listed anywhere online in other real estate markets by the end of 1999. The increased demand caused the rapid growth in home prices. Failure to implement policies to drastically increase home inventory in developed countries to address the structural transformation of the housing market which drastically increased the demand for homes was a significant economic policy failure. Instead of implementing policies to significantly increase home inventory, new construction was idle for over a decade as policymakers adopted the media-driven misinformation of a real estate bubble and supported policies to address the nonexistent real estate bubble.

Air pollutants and outlays vs quality of life in Poland and the welfare economics

Motivation: The paradigms of the welfare economics are considered to be the basis of modern considerations on the measurement of quality of life. Today, there is no doubt that the quality of the environment, and especially the air quality that man breathes, is an essential element of the quality of life. Environmental problems, including air quality, often contribute to the failure of economic policies aimed at maximizing people’s well-being. Therefore, the state of all elements of the environment is important for the effectiveness of the implementation of the welfare economics and ensuring a satisfactory standard of living of the society. The last 20 years in Poland have been a time of catching up with many years of neglect in the area of the natural environment. It is a process that takes time and there is no possibility to achieve a high environmental quality of life in the short term. There is no disputing that measures were taken during this period to improve the environmental quality of life.
 Aim: The study focused on air quality, as it is an element of the environment that cannot be cleaned before use. The aim of the study is to check whether the measures taken to reduce emissions of pollutants into the atmospheric air have been effective and to what extent it was possible to improve its condition and to improve the environmental quality of life of the Polish society in terms air the air we breathe.
 Results: The results of the analysis in dynamic terms indicate that the quality of life in Poland during the transition, taking into account the emission of the main air pollutants, has improved.

군사정부, 부정축재 대자본가들을 만나다

This paper specifically examines the relationship and its change between Korean government and the capitalists during the military regime. The May 16 military coup in 1961 put large capitalists illegally accumulated wealth on the verge of punishment. However, as the military government experienced difficulties in economic management, large capitalists taking a chance proposed various economic policies to the government and began negotiations. They submitted their proposals to the military regime, and successfully took charge of major projects in the economic development plan simultaneously reducing the fines. As much as the repeated failure of economic policy made the military government impatient, the illegal capitalists emerged as important partners in the nation’s economic projects. In the framework of economic and state management, the two actors shared a common understanding, and the capitalists reflect their understanding of the establishment and management of national policies. Since then, the Korean economy was developed in a way that the private understanding of chaebol(재벌) overwhelmed the national interest under the protection of authoritarian governments.

Environmental Issues, Economic Policies and Agricultural Development

Issue: Mar-Apr 2021
 This paper discusses economic policies that have supported a particular kind of agricultural development in Punjab, as well as environment-specific policies, that have sought to deal with various environmental problems arising from that pattern of development. In doing so, we highlight some major environmental issues associated with economic policies in the state, including with respect to water, air, soil and climate change. We analyse why and how economic policy failures, including at the national level, adversely affect environmental quality in Punjab. The aim of this paper is to highlight these issues, as a first step towards identifying policies that may do a better job of protecting the environment.

Environmental Issues, Economic Policies and Agricultural Development: The Case of Punjab, India

This paper discusses economic policies that have supported a particular kind of agricultural development in Punjab, as well as environment-specific policies that have sought to deal with various environmental problems aris- ing from that pattern of development. In doing so, we highlight some major environmental issues associated with economic policies in the state, including with respect to water, air, soil and climate change. We attempt to analyze why and how economic policy failures adversely affect environmental quality in Punjab. The aim of this paper is to highlight these issues, as a first step towards identifying policies that may do a better job of protecting the envi- ronment. This is important because Punjab has been a trendsetter for India in its farm practices and policies.

2008 Financial Crisis: A Comparative Analysis of Turkey and Brazil in Terms of Economic Policies

The Financial Crisis, which broke out in the US due to the mortgage bubble, had spread through financial channels to core countries. The periphery countries that weren’t fully integrated into the financial markets had been influenced via economic ways, indirectly. However the crisis -spreading on a global scale- had had negative impacts on all countries and had led to changes in the economic policies of states. One of the possibilities of the crisis was for it to turn into a cyclical crisis because of its reach throughout the whole world and the failure of economic policies -applied to one after another- in the preventing of the spread and impact of the crisis in a short time, resulting in economic and neoliberal policies being questioned. The periphery economies, being economically affected by the crisis, had to assume many economic costs due to mortgage loans in the US, which had nothing to do with them. In the study, through the examples of Brazil and Turkey within the framework of these discussions, the implication of economic policy has been examined for periphery countries. In the study, the way in which both countries were affected by the crisis has been evaluated through net capital flows, foreign direct investments, foreign trade data, and main economic indicators. Although neoliberal policies, which pushed both countries towards this process, had added them to the global economic system, they had to apply Keynesian policies because neoliberalism had become inadequate in exiting the crisis. In the conclusion of the study, policy proposals have been made for getting out of the crisis by discussing the ineffectiveness of the economic policies that had been implemented.

Evidence From Data Analysis, Fifteen Developed Countries and the United States Home Prices Increase Between 1990 to 2006 Result of Advancement In Technology, Worldwide Economic Collapse and Great Recession Result of False Information by Media and Economic Policy Failures: Walters Real Estate Bubble Impossibility Price Transparency Theory, Real Estate Bubble Is Impossible, An End to Economic Policies Based on False

Based on the findings of the current study, policymakers must take a hard look at the media and themselves, because the world can no longer blame the subprime mortgage industry for causing the Global Financial Crisis of 2007 and 2008. The public must demand answers from the media and policymakers explaining how an economic crisis that could have been avoided resulted in the collapse of the global economy. The lack of evidence supporting the theory of a financial bubble and a real estate bubble called for further investigation of factors leading to the Global Financial Crisis of 2007 and 2008. Evidence presented from data analysis in Walters (2018) suggested no financial bubble existed in developed or developing countries around the world, preceding the Global Financial Crisis of 2007 and 2008. Based on data analysis in Walters (2018) the evidence also suggested, the lasting effect of economic policies in response to the Global Financial Crisis of 2007 and 2008 for both developed and developing countries around the world, had no significant impact on the financial sector but pointed to a lack of economic growth. The findings raised significant questions about the existence of a real estate bubble in both developed and developing countries. Evidence from data analysis presented in Walters and Djokic (2019) suggested the existence of a real estate bubble in the United States real estate market preceding the Global Financial Crisis of 2007 and 2008 was a false conclusion. Data analysis in Walters (2019) resulted in, 0.989 Adjusted R-square, 194.041 Mean Dependent Variable, 5.908 Square Error of Regression, 488.726 Sum-of- Square Residual, and 0.00000 Probability (F-statistic), for correlation between the independent variable representing advancement in technology, and the dependent variable representing home purchase price in the United States preceding the Global Financial Crisis of 2007 and 2008. The findings in Walters (2019) concluded the rapid increase in home purchase price in the United States real estate market, was due to increased demand for homes from the adaptation of advancement in technology in the real estate and mortgage industries. The current study expanded the investigation of the growth in home purchase price to fifteen developed countries around the world, building on the findings of previous research by the current researcher. The researcher in the current study concluded, the existence of significant and near-perfect correlation in many cases, between the dependent variable representing growth in home purchase price, and the independent variable representing advancement in technology. The analysis was based on data analyzed from fifteen developed countries around the world, which was collected between 1990 and 2006. The data analysis included home purchase price data from, Canada, United Kingdom, Denmark, Finland, France, Italy, New Zealand, Sweden, Netherlands, Australia, Ireland, Belgium, Norway, Spain, and Portugal. Data preceding the Global Financial Crisis of 2007 and 2008 were analyzed in the current study. The researcher in the current study concluded the existence of overwhelming evidence suggesting advancement in technology was responsible for the rapid increase in home prices in developed countries around the world preceding the Global Financial Crisis of 2007 and 2008. The result of data analysis in the current study provided further confirmation of the accuracy of former Federal Reserve Board Chairmen, Alan Greenspan and Ben Bernanke 2005 assessment which concluded, the occurrence of a real estate bubble developing was impossible due to the Efficient Market Hypothesis, before reversing course subsequent their assertion in 2005 (Belke & Wiedmann, 2005; Starr,2012). The result of the current study provided additional evidence supporting Eddison Walters Risk Expectation Theory of The Global Financial Crisis of 2007 and 2008. The result from data analysis also confirmed the need for the adaptation of Eddison Walters Modern Economic Analysis Theory. As a result of the findings in the current study, the researcher concluded the development of a real estate bubble is impossible where there exists real estate price transparency, as is the case in most developed and developing countries. The researcher presented Walters Real Estate Bubble Impossibility Price Transparency Theory based on the findings. False information of a real estate bubble and predictions of a real estate crash disseminated through the mainstream media and social media can be a destructive force with a disastrous effect on the economy around the world. The failure by the media to hold themselves and policymakers to a higher standard resulted in the Global Financial Crisis of 2007 and 2008. The result of the failure by the media was a worldwide economic crisis and the Great Recession that followed the Global Financial Crisis of 2007 and 2008. Lessons learned from the Global Financial Crisis of 2007 and 2008 can assist in preventing another economic crisis in the future.

The importance of economic reform Policies in Arab states programs development: Case study of Sudanese economy - Sudan: أهمية سياسات الإصلاح الاقتصادي في تنمية البرامج الاقتصادية في الدول العربية: دراسة ميدانية على الاقتصاد السوداني- السودان

The study aims to identify the causes of deterioration of the economy in Sudan, the problem of the study there is administration corruption, no separation of government authorities and the failure of economic policies, no transparency. The study was conducted (inductive, deductive and analysis) approach so most important results of the researcher: the lack of transparency, the immigration qualified outside Sudan and economic blockade are the reasons of the failure of the Sudanese economy. The most important recommendation of the study: to make real policies towards the motivating expatriates and investors, attention to agricultural, animal’s productions and transformative industries.

The Emergence of Filipino Technocrats as Cold War “Pawns”

ABSTRACT This article discusses the rise of Filipino technocrats in the context of the Cold War. Because of the fear of a communist takeover of newly independent yet vulnerable agrarian societies, the USA emphasised economic modernisation, also conceived as a means to defeat communism. Promoting free market liberalism, the Bretton Woods institutions played a critical role in supporting US-sponsored modernisation. In promoting a modernisation agenda, the US administrations needed technocrats, steeped in US ways of management and free market ideology. For the Philippines, this involved local training and education and graduate study in US colleges. This provided the state with reliable managers and provided the technocrats with the expertise to serve local and multinational corporations. The political value of the technocrats was demonstrated when they led key economic agencies during the pre-martial law Marcos administration. When Marcos declared martial law in 1972, he retained the technocrats who then facilitated intensified development assistance by the Bretton Woods institutions as part of the US’s Cold War strategy. This scheme, however, failed to stem the growth of the communist insurgency due to the failure of economic policies to address poverty and underdevelopment, uncontrolled crony capitalism and the regime’s repression. An anti-dictatorship movement burgeoned and ultimately led to the ouster of Marcos and the technocrats.

박정희식 경제성장 정책의 종점으로서 경제안정화 종합시책

The Economic Stabilization Policy in 1979 was designed to solve the problems which was accumulated through the economic development drive since the early 1960s under President Park Chong Hee. President Park’s determination, fundamental diagnosis, necessity of 1 or 2 year calm-down period, and revision of the target in the stabilization policy had never expressed by the Park Administration during 20 years before the policy in 1979. The stabilization policy recognized the failure of economic policy regardless of the causes, which was caused by internal policy error and external transitions in world economy. BRHowever, the policy was not appropriately operating because it was not possible to change or replace dramatically the executive style which had formed throughout 1960s and 1970s under President Park’s governing style. The same problem happened in bureaucrat groups and conglomerate owners, who were familiar with the Park Administration’s economic policies since the early 1960s. In the end, two facts which are that the policy was desined and that the policy was not working, means that the President Park’s economic growth policy would not be effective anymore.BRIn addition, changes in US trade policy was another crucial cause for the stabilization policy in 1979 and economic crisis in 1980. The US government urged the market libralization since the mid 1970s which was not consistent with the Park Administration’s protectionism and monopoly of domestic business. This shows the change in external environment was another cause of economic crisis in 1979 and 1980 and the Park’s policy was no more working under the international condition at the time. Finally the year 1979 was the turning point in economic policy through the stabilization policy as well as in political system through collapse of the Yusin.

ПОХОДЖЕННЯ КОРУПЦІЇ І ЗНАЧЕННЯ ВЛАДИ В РАДЯНСЬКОМУ МИНУЛОМУ (НА ПРИКЛАДІ БІЛОРУСІ)

Using the example of the BSSR the article analyzes the historical background of corruption and abuse of power in modern society. Mistakes and shortcomings in the personnel policy of the party-state leadership of Soviet Belarus are shown. The failure of economic policy is stated to have been caused by a number of objective and subjective factors including imperfection of the personnel selection system, weakening of state and labor discipline, spread of drunkenness and alcoholism, theft of state and public property. It is noted that in the 1970-1980s the number of embezzlement and misappropriations, the facts of using one's official position for personal enrichment did not steadily decline but increased, which resulted in great material damage to the national economy. A feature of that period was the fact that the facts of organized and corrupt crime were revealed in the USSR and Belarus. The most notorious cases: the numeral facts of venality by the officials of housing-departments of the Minsk district executive committee (1970), larcenies and abuses in the consumer cooperation in BSSR, especially in Orsha, where the high-level heads of Vitebsk Regional executive committee and Orsha district executive committee as well as some other authority members were involved into official corruption (1973). The negative tendencies of abuse took place also among Party’s and Soviet leaders: in Vitebsk Region during 1975-1980 more than 100 authority members were penalized for different cases of abuse; in 1981 138 heads were brought to responsibility. All these facts caused social tension in the society, disaffection of the population with the activities of the authorities, government and militia of the republic. As a result, the party-state leadership lost its authority, which along with economic problems and contention in society led to the collapse of the USSR. It is concluded that numerous facts of upward distortions and fraud bring into question the reliability of reporting figures on the implementation of plans and programs for the economic development of the BSSR, and numerous modern conflicts in countries that formed the USSR arose in the Soviet past.

Política monetaria y equidad en Colombia, 1980-2010.

El presente artículo tiene por objetivo, analizar en qué medida la política monetaria, enfocada principalmente a controlar el comportamiento de la inflación, en las últimas tres décadas 1980 – 2010, ha contribuido a mejorar los niveles de equidad en Colombia. Para lograr lo anterior, se hace uso de la observación de la trayectoria de las variables implicadas en el problema investigativo, detallando su tendencia en cada uno de los periodos estudiados, y haciendo la contrastación con el comportamiento de las demás variables endógenas al modelo. Uno de los hallazgos fundamentales de en este documento, se relaciona con el éxito de la política monetaria en Colombia durante el periodo en estudio, de acuerdo con las metas y objetivos planteadas por la autoridad monetaria. Sin embargo, otro de los resultados da cuenta del fracaso de la política económica en materia de equidad.

Psychology, Economic Policy Design, and Implementation: Contributing to the Understanding of Economic Policy Failures in Africa

When designing economic policies, policy makers work with the assumption that targeted beneficiaries would respond in a manner that would lead to success of the policy. However, the responses of beneficiaries do not always follow the expected pattern. Drawing on Thaler and Sunstein’s (2008) and Asante’s (2003) theses, this paper projects the view that economic policies that fail to take account of the psychology of the target people fail. The position in this paper is based on the premises that human beings, as choice architects, are not necessarily rational beings always acting in their self-interests and that culture, traditions, and national aspirations influence the success of economic policies. It is argued that inertia (the unwillingness to move or change the status quo) is related to how individuals living in poverty respond to policies intended to alleviate their conditions. New theoretical insights are advanced and recommendations made on the basis of the exploration of the literature.

The rise of informal entrepreneurs in Zimbabwe: evidence of economic growth or failure of economic policies?

This paper investigates whether the rise in the number of informal entrepreneurs in Zimbabwe is linked to economic growth or failed government policies. It argues that for the past 30 years informal economic activities have proliferated at an unprecedented rate as a response to socio-political and economic challenges and thus became a default position, for many to escape debilitating poverty. It draws from the literature, the experiences of one of the authors who is a Zimbabwean and views of interviewees. The major finding is that the contribution of informal traders in Zimbabwe cannot result in sustainable development nor can it significantly increase economic growth. The paper concludes that the rise in informal sector business is rather indicative of a lack of accountability for the plunder of resources and its attended consequences and failure of government economic policies. Finally, it proposes the adoption of social entrepreneurship approaches to address social problems.

Nature, Power and Growth

This essay reviews the relationship between natural–resource abundance and economic growth around the world, and presents some new results. The principal reasons why resource–based production can inhibit economic growth over long periods are traced to the Dutch disease, neglect of education, rent seeking, and economic policy failures. Across a large number of countries in the period from 1965 to 1998, the share of the primary sector in the labour force is shown to be inversely related to exports, domestic and foreign investment, and education, and directly related to external debt, import protection, corruption, and income inequality. The cross–sectional data show, moreover, that the share of the primary sector in the labour force is inversely related to per capita growth across countries. None of this lies in the nature of things, however. What seems to matter for economic growth is not the abundance of natural resources per se, but rather the quality of their management, and of economic management and institutions in general.

Success and Failure of Economic Policies: The Experience of Greece and Portugal

This paper evaluates macroeconomic and structural policies in Greece and Portugal over the 1980s and 1990s and analyses the factors that have shaped economic policy making in the two countries. Portugal seems to have been a successful case of economic reform and structural adjustment as reflected in its impressive economic performance. In Greece, stabilization measures and structural adjustment have been delayed as shown by the country's poor economic record in the 1980s and the early 1990s. Policy options seem to have been largely determined by the state of the economy and the flow of financial transfers from the European Union, as well as by local historical legacies, political institutions and the capacity of the state to implement policy measures.

Role of Economic Policies in Protecting the Environment: The Experience of Pakistan

Economic policies that ensure efficient allocation of resources is a necessary, but not a sufficient condition for creating appropriate environmental incentives. Environment-specific policies are also needed to correct market failures leading to environment problems. Two types of policies can be used to deal with environmental problems—command and control policies and incentive- or market-based policies. Command and control policies involve government mandating of environmental quality standards on emissions, technology type, or input use. Incentive- or market-based policies use prices to try to affect pollution and resource use. Despite the advantages of marketbased approaches, Pakistan, like many other countries, mostly followed control policies. But these policies have often failed to achieve results because regulating institutions lack the financial and technical resources to implement these policies effectively. Pakistan’s brown environmental problems include industrial waste water pollution, domestic waste water pollution, motor vehicle emissions, urban and industrial air pollution, and marine and coastal zone pollution. Economic policy failures are contributing significantly to many of these problems. Green environmental problems affect irrigated agriculture, rainfed agriculture, forests, and rangelands. In irrigated agriculture, economic policies, such as subsidies on irrigation water, have provided incentives for farmers to over use water in their production practices, thereby exacerbating the problem of waterlogging and salinity. Deforestation and rangeland degradation have resulted, in part, due to lack of property rights in communal forests and lack of incentive for local communities to participate in forest management decisions.

Globalization and the Failure of Economic Policy

Globalization and the Failure of Economic Policy