Title:
The Inadmissible Social Cost of the Modern Monetary Policy and the Liberal Fiscal Policy

Authors:
Dr. Ioannis N. Kallianiotis, USA

Abstract:

The objective of this paper is to determine the social cost of our modern public policies (monetary and fiscal). By using different policy rules, we test the effectiveness and efficiency of monetary policy. Then, we look at the cost and benefits of the liberal fiscal policy. The benefits, lately, are insignificant ant the reason is the ignorance of the policy makers. This modern (zero federal funds rate) monetary policy, the last twelve years, has an enormous social cost to taxpayers and depositors and also to the entire society, due to inflation (demand-side) that this unnecessary policy has caused to all of us. People have lost their wealth, their savings, their disposable income, their consumption, their investments, and their jobs. The liberal fiscal policy (to “save the environment”) has destroyed the energy production, oil, natural gas, coal and this reduction has increased the prices (supply-side inflation). They do not know what the true objective in life is and consequently, they cannot satisfy it, which is the maximization of the social welfare, the wellbeing in every sector in the lives of their citizens. What their liberal New World Order has caused to people, it is just uncertainty and an enormous unethical social cost, which is measured, here, and it is in trillion of dollars per annum.

DOI: http://dx.doi.org/10.51505/ijebmr.2022.6820