Now, that said, in unusual times where the concern is with very weak growth or possibly deflation - rather rare circumstances - first of all, fiscal policy can be a very important tool. And it's natural that if it can be employed that, just as monetary policy is doing a lot to try to stimulate growth, that fiscal policy should play a role. And normally, you would hope, in an economy with those severe downside risks, monetary and fiscal policy would not be working at cross purposes to get - but together.
... [I]n normal times, I think it's very important that there be a separation between monetary and fiscal policy, and it's a primary reason for independence of a central bank. We have seen all too many examples of countries that end up with high or even hyperinflation because those in charge of fiscal policy direct their central bank to help them finance it by printing money, and maintaining price stability and low and stable inflation is very much aided by having central bank independence.
Water, if one has none and needs it, is very important for its use value, so the first value will be high. The more water you acquire, the less important it becomes to get more of it, so the additional value of an extra unit (litre) of water will decline as the consumer obtains more water.
Smith spent some time in examining the complexities of another very important neo-classical economic concept which is coupled with utility, scarcity. His clearest statement of its effect on price was in considering its effect on the price of 'food, clothing and lodging'.
Michael Graetz describes the fight over the repeal of the estate tax and its current diminished state. Graetz argues that the political battle over the repeal of the estate tax reflects a fundamental challenge to our nation's progressive tax system. This Address concludes that a revitalized estate tax is important for managing the national debt and reducing massive inequalities in wealth.
(Graetz, Michael J., (May 5, 2016). Boston College Law Review, Vol. 57, No. 3, 2016)
Germany has become so obsessed with recording fiscal surpluses that its trucks can no longer transit important bridges and so the export model is being undermined. It is so obsessed with screwing its own people and overseeing an increasing bias to precarious work with low pay that the future retirements of their workforce is in jeopardy. The chickens are coming home to roost in a big way for Europe’s so-called powerhouse. No other nation should follow its lead....
... globalization and financial innovations have advanced the scope for capital markets to channel credit to various users in the economy. In particular, the emergence of numerous, and often very large, institutional investors and the rapid growth of credit risk transfer instruments have enabled banks to manage their credit risk more actively and to outsource the warehous- ing of credit risk to a diverse range of investors. A wider dispersion of credit risk has "derisked" the banking sector, which still occupies a strategically important role in the economy, in part because of its role in the payments system. It is widely acknowledged, meanwhile, that holding of credit risk by a diverse multitude of investors increases the ability of the financial system as a whole to absorb potential shocks.
Conservatives have a long history of viewing higher education as a cradle of left-wing thought and radicalism. As early as the 1920s, conservatives were waging an ideological war against liberal education and the intellectuals who viewed higher education as a site of critical dialogue and a public sphere engaged in both the pursuit of truth and in developing a space where students learned to read both the word and world critically. Conservatives were horrified by the growing popularity of critical views of education and modes of pedagogy that connected what students were taught to both their own development as critical agents and to the need to address important social problems. During the McCarthy era, criticism of the university and its dissenting intellectuals cast a dark cloud over the exercise of academic freedom, and many academics were either fired or harassed out of their jobs because of their political activities outside the classroom or their alleged communist fervor or left-wing affiliations.
This was not simply because it was believed that societies became wealthy through hard work. It was, far more importantly, because of an explicit or implied belief in the possibility of establishing a utopia on earth, of, as Oliver Cromwell (see Trevor-Roper 1972 pp.281ff) believed, reforming society and vanquishing the forces which were delaying the return of Christ and the establishment of his millenarian kingdom.
It is easy, when dealing with economic issues, to fall into the neoclassical (and, of course, neoliberal) trap of treating the economy as a self-existent, autonomous entity with its own raison d'être, independent of 'social' and 'political' concerns. Even if it could be shown that redistribution had negative 'economic' effects, the importance of redistribution as a means of is surely paramount (of course, I'm assuming that both objectives are preferable to the disenfranchising consequences of allowing a drift into plutocracy).
Here is the link between reserves and bank lending. Reserves go down when banknotes increase. Banknotes increase when borrowers take the money they borrowed out of the bank and part or all of the money remains in cash, rather than being re-deposited in the banking system. For an individual bank, the link between reserves and loans is an indirect and largely uncontrollable one. Individual banks can try to "get rid of" their excess reserves by making new loans, and, to the extent that the deposits so created leave their bank and, importantly, do not return as new deposits (the bigger the bank the less likely this condition is to hold), this will work for them. But for banks as a whole, new lending leads to a reduction in reserves only to the extent that the deposits created move into cash in circulation.
(Paul Sheard, , Standard & Poor's Rating Sevices, Economic Research, August 13, 2013, p. 7)
The New York Fed also has a particularly important role in bank supervision - most of America's "too-big-to-fail" banks are located in its jurisdiction (and most global banks have a presence there). And the New York Fed has long been the Fed System's eyes and ears on Wall Street.