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To make matters worse, several states have country-sized G.D.P.'s, but none has the macroeconomic tools of an independent country.
The Fed funds rate is the platform upon which the global economy is built, and was tested so profoundly that Bernanke and Yellen (who served as vice-chair before her promotion) had to invent new suites of macroeconomic tools.
"The key lesson is when you face a confidence issue where the market participants no longer trust each other, the conventional macroeconomic tools are not as effective," he said.
The government has battled the country's problems with classic macroeconomic tools: tightening the supply of money to choke off double-digit inflation and then slashing interest rates this year to energize the economy.
In the coming five years there may well be an important role for the more traditional "demand side" macroeconomic tools of monetary and fiscal policy.
"Whilst the UK government holds all the major macroeconomic tools, we are doing all we can to help people back into jobs or training".
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It is a macroeconomic tool, not a statement of financial success or failure.The SNB itself understands this.
By European standards, America's dole is short-lived, a characteristic that encourages people to get a new job quickly.As a macroeconomic tool, the dole works well.
Fiscal accommodation was unnecessary as a macroeconomic tool at that point, but the red ink kept flowing.Another pivot is then possible, to the argument that crowding out in the 2000s was a good thing, because any additional private borrowing would simply have done more to inflate the housing bubble.
He said economists who currently extrapolate services data from company earnings reports and independent research from trade groups and associations such as the Institute for Supply Management should find it a helpful macroeconomic tool.
This is a particularly relevant issue in the current context, in which macroeconomic policy tools to increase demand are limited, and unemployment is already very high.
Related(20)
micro tools
structural tools
holistic tools
overall tools
financial tools
economical tools
broad tools
economic tools
monetary tools
aggregate tools
cost effective tools
macroeconomic signals
macroeconomic crises
macroeconomic outcomes
macroeconomic factors
macroeconomic policies
macroeconomic indicators
macroeconomic trends
macroeconomic data
macroeconomic prospects
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