What are the important debates for financial markets?
Several profound academic debates are now very important for financial markets. These are: An analysis of the effects of a recession on subsequent long-term growth: "Roaring twenties" or loss of potential growth? A debate on whether or not the Phillips curve will return, and therefore on whether or not a policy of strong demand stimulus has an inflationary effect; A debate on the origin of the fall in long-term interest rates: expansionary monetary policies or excess global savings? So, should we or should we not be concerned about rising interest rates and high debt levels? A debate on the nature of money: transaction money, in which case monetary expansion leads to inflation, or investment money, in which case it leads to a rise in asset prices? An analysis of the effects of stimulation of domestic demand on the exchange rate, which is key to forecasting the dollar's exchange rate .