000			01136nam a22001457a 4500
999			_c521186 _d521186
008			221226b ||||| |||| 00| 0 eng d
100			_aWoodford, Michael _936400
245			_aEffective demand failures and the limits of monetary stabilization policy
260			_aThe American Economic Review
300			_a112(5), May, 2022: p.1475-1521
520			_aThe challenge for stabilization policy presented by the COVID-19 pandemic stems above all from disruption of the circular flow of payments, resulting in a failure of what Keynes (1936) calls "effective demand." As a consequence, economic activity in many sectors can be inefficiently low, and interest-rate policy cannot eliminate the distortions—not because of a limit on the extent to which interest rates can be reduced, but because interest-rate reductions fail to stimulate demand of the right sorts. Fiscal transfers are instead well suited to addressing the fundamental problem, and can under certain circumstances achieve a first-best allocation of resources. – Reproduced
773			_aThe American Economic Review
906			_aMONETARY POLICY
942			_cAR