A Liderança Americana, Helicopter Money e a Contaminação da Economia Mundial

John Taylor é um dos poucos leading economists que consegue entender a situação da economia mundial e os efeitos causados pelos erros sistemáticos da política econômica americana: Economic policies in America affect the world in ways that are often subtle. In the case of monetary policy, for example, decisions on interest rates by foreign central banks are influenced by interest-rate decisions at the Federal Reserve because of the large size of the U.S. economy. If the Fed holds its interest rate too low for too long, then central banks in other countries will have to hold rates low too, creating inflation risks. If they resist, capital flows into their countries seeking higher yields, thereby suddenly jacking up the value of their currencies and the prices of their exports.
Due to the Fed's low rates, the European Central Bank held short-term interest rates low in the euro zone in 2003-05. Economists at the Organization for Economic Cooperation and Development found that these low rates in Europe were the cause of the housing booms in Greece, Ireland and Spain. As with all unsustainable booms, these were associated with undue risk taking, bad bank loans, busts, and huge government borrowing to bail out banks or to finance spending when revenues fell during the ensuing recession. Excessive government borrowing and problem banks are the source of the current crisis in Europe, which has in turn increased economic and financial risks for the U.S.