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I am a macroeconomist located in the United Kingdom and have my own school of economic thought 'Morganist Economics', which the British government uses extensively. I have written an article explaining how pension saving can be used to control inflation instead of the interest rate or taxation. There is a report below the article that displays the outcome of the use of pension economic control in the United Kingdom over the last ten to fifteen years. You can read the article for free at the link below.
[quote=Morganist;61457412]I am a macroeconomist located in the United Kingdom and have my own school of economic thought 'Morganist Economics', which the British government uses extensively. I have written an article explaining how pension saving can be used to control inflation instead of the interest rate or taxation. There is a report below the article that displays the outcome of the use of pension economic control in the United Kingdom over the last ten to fifteen years. You can read the article for free at the link below.
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Morganism isn’t the only economic school invented a round these parts.
[quote=Morganist;61457412]I am a macroeconomist located in the United Kingdom and have my own school of economic thought 'Morganist Economics', which the British government uses extensively. I have written an article explaining how pension saving can be used to control inflation instead of the interest rate or taxation. There is a report below the article that displays the outcome of the use of pension economic control in the United Kingdom over the last ten to fifteen years. You can read the article for free at the link below.
Instead of increasing the interest rate to reduce inflation the rate of pension saving can increase to reduce inflation. It has been used in the United Kingdom over the past ten to fifteen years and it worked well, it is also less expensive than increasing the interest rate when government debt is high due to the increase in the return payment increasing with a higher marketer rate of interest.
Instead of increasing the interest rate to reduce inflation the rate of pension saving can increase to reduce inflation. It has been used in the United Kingdom over the past ten to fifteen years and it worked well, it is also less expensive than increasing the interest rate when government debt is high due to the increase in the return payment increasing with a higher marketer rate of interest.
Pensions are meant to be paid out. Pensions plans are usually very generous in their payouts because pensions are used to entice people to do something. Therefore pensions are an inflationary factor in the economy. How will you increase rate of pension savings?
Pensions are meant to be paid out. Pensions plans are usually very generous in their payouts because pensions are used to entice people to do something. Therefore pensions are an inflationary factor in the economy. How will you increase rate of pension savings?
There is a saving process to fund pensions for retirement, funds have to be paid into a pension for the pension value to accumulate. By changing how people pay into pensions rates of saving and consumption can be managed like how the interest rate is altered. Increasing the amount paid into a pension each year or each month can dampen demand and reduce inflation. This prevents the need to increase the interest rate and it also increases the value of the pension for retirement. Rather than increasing the interest rate to reduce inflation, just increase pension saving.
Pension?
there are public and private pension plans-the traditional pension plan of sending a retiree a check each month is being phased out,instead it is the 401k plan now.
It is voluntary and not controlled by the government.
So what is left is government sponsored Social security plan.
Are you suggesting that to control inflation,govt should raise the SS contribution from one's payroll check??
Such increase would be permanent,since SS would be broke sometime in the future,government would not consider rolling it back,the decision is not based on inflation but the need to support a larger group of retirees .
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