TAILIEUCHUNG - Beyond the Business Cycle: The Need for a Technology-Based Growth Strategy

The CPR contain a list of Program Director responsibilities (.). This extensive list is intended not only to communicate the specific responsibilities of the position so that the individual will be effective as a program director, but also to communicate to the sponsoring institution (., DIO, GMEC, department Chair) the role and responsibilities of this position and why the program director needs sufficient protected time and financial support (CPR ) to fulfill these responsibilities. By assuring that each of the listed duties occurs on a regular basis, the program director will facilitate an enhanced learning environment. For example, the. | Beyond the Business Cycle The Need for a Technology-Based Growth Strategy Gregory Tassey Economic Analysis Office National Institute of Standards and Technology tassey@ February 2012 Although this paper is primarily an assessment of alternative economic growth strategies implications for specific policy instruments are unavoidable. Any such statements are mine alone and do not represent official positions of NIST or the Department of Commerce. I am indebted to Stephen Campbell Albert Jones and Phillip Singerman for helpful comments on previous drafts. Abstract Facing the worst economic slowdown since the Great Depression efforts to reestablish acceptable growth rates in both Europe and the United North America are relying to a great degree on short-term stabilization policies. In a structurally sound economy the neoclassical growth model states that appropriate monetary and fiscal policies will enable price signals to stimulate investment. The subsequent multiplier effect will then drive sustainable positive rates of growth. However these macrostabilization policies can do relatively little to overcome accumulated underinvestment in economic assets that create the needed larger multipliers. This underinvestment has led to declining . competitiveness in global markets and subsequent slower rates of growth a pattern that was underway well before the Great Recession. However the massive monetary and fiscal stimulus applied since 2008 in the United States has had only a modest impact on economic growth. The reason is that the prolonged current slowdown is a manifestation of structural problems. Thirty-five years of . trade deficits for manufactured products cannot be explained by business cycles currency shifts and trade barriers or by alleged suboptimal use of monetary and short-term fiscal policies. High rates of productivity growth are the policy solution which can be accomplished only over time from sustained investment in intellectual physical human

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