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I am a macroeconomic, but I disagree with the two schools are the leading influence ikon in my expertise in the US: New Keynesians are trying to increase aggregate demand, and are trying to right in reduce ikon taxes. Both schools have already tried and failed in their efforts to overcome the current state of the persistent weakness of the economy with high income in recent years. Now is the time to reach a new strategy, based on sustainable growth based on investment.
Core challenge of macro-economics is the allocation of social resources ikon in an optimal way. Job seekers must have the mills should allocate their capital efficiently; and a portion of income saved, instead of spending all, should be invested to improve welfare in the future.
Both new Keynesian and must be in the completely wrong were for the third challenge. Most high-income countries: the United States, much of Europe and Japan - have failed to invest adequately or smart future. There are two ways of investment: investment in domestic and international investors - and on a worldwide scale, both ways are not up to the required level.
Investment in water was carried out in various forms, including business investment in machinery ikon and buildings; household investment in housing; and government investment in human resources (education, skills), ikon knowledge (research & implementation), and infrastructure (transport, ikon energy, water and disaster risk prevention) .
The approach of the new Keynesians are trying to promote all forms of domestic investment. Thus, according to this view, the spending is just spending. ikon Therefore, the new Keynesian ikon tried to promote more investment than households through lower interest rates as low as possible, up to buy cars based on the securitized loans, and through the investment ikon in infrastructure using labor-based new stimulus program short-term growth. When investment spending ikon does not increase, they suggested that we should move to the "surplus" savings to consumers "indulge".
In contrast, during the same mission to promote private investments (of course, not public investment!) Through more tax cuts and reduced government regulation. They have tried this method several times in the United States, ikon especially during the reign of George W. Bush. Unfortunately, the result of this intervention is to reduce development status bubble on the real estate market in the short term, rather than increasing the sustainability of individual investments effectively.
Although the policy is alternation between the sexes in the same and new Keynesian, but there is a persistent fact is the significant reduction of investment spending in national income in most high-income countries in recent ikon years. According to the IMF, the total expenditure for investment in these countries has decreased from 24.9% of GDP in 1990 to only 20% in 2013.
In the US, investment spending fell from 23.6% of GDP in 1990 to 19.3% in 2013, and decreased significantly more in absolute value (gross investment minus depreciation). In Europe, this percentage dropped from 24% to 18.1% of GDP in 2013.
Both new and Keynesian schools are not in the same focus on remedies effectively persistent decline in expenditures for investments. The society we need to invest more and more urgent, especially investments ikon to move production to create more carbon emissions, energy use and full of pollution, to the sustainable economy based on the use of natural resources more efficient energy sources and low carbon. These investments require steps mutually supportive of both the public ikon and private ikon sector. ikon
The necessary investments include deployment of solar energy ikon and wind energy scale, widely used in the vehicles using electricity, both public transport (buses and trains) and individual (car), building energy use efficiency; and the power transmission system to the transmission of renewable energy away (for example, from the North Sea and North Africa to the European continent, and the Mojave Desert in California to the densely populated centers of United States).
But at a time when our society should undertake ikon this investment, the public ikon sector in the US and Europe are going through the camp "regressive investment" really. The government, in the name of the target to balance the budget, is cutting public investment. But the private sector can not invest in a sure and safe alternative energy on the grid when the state regulator, the rules
