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Instead, the authorities should use the macroeconomic levers at their disposal to slow growth, possibly by tightening fiscal policy or by allowing the yuan to strengthen.
A decade is not long to reverse the effects of de-industrialisation. Ieuan Wyn Jones, deputy first minister and Plaid Cymru's leader, says local politicians "don't have the macroeconomic levers.
(Some of this is contrived: increased health-care coverage may well soften the sting of jobs lost to freer trade, but that is not why Mr Obama is pursuing it).The mercy of othersLaudable as most of these microeconomic moves are, rebalancing depends crucially on two macroeconomic levers Mr Obama either cannot or will not touch: interest rates and the dollar.
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He should give it, because against a background of tight fiscal policy, monetary policy is the best macroeconomic lever that Britain has.
Michael Klein, professor of international economics at Tufts University and author of a book on exchange rates, noted that allowing full currency convertibility would mean giving up a powerful macroeconomic lever that is critically important to China's export sector — a major jobs engine.
"Their ability to make macroeconomic and microeconomic levers actually work is quite weak for a whole range of reasons," Dr. Gainsborough said.
But it accepts them.Despite early fears, the ANC has not proved reckless with the levers of macroeconomic policy.
"While I realize that macroeconomic uncertainties exist, we control many of the levers" necessary to build the business, he said.
This in turn will happen only with policy levers across a wide range being pulled: expansionary macroeconomic policy to keep jobs markets tight, labour policy to set wage-floors and other protections for workers and to police violations.
Or take macroeconomic policy.
First, macroeconomic policy.
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