The concept in monetary policy is defined in supply side economy and demand side economy. The monetary policy is first credit(personal) build up vs. infrastructure build up, interest rate vs. earnings(corporate and personal), and wages vs. currency devaluation(inflation).
When we realized that currency devaluation is not universal, but selective for export trade balance; inflation worries are thrown out. The new economy growth is controlled by currency valuation in global market place; and we use buying power wisely, in addition. After a record study since 1991, economic growth has been adjusted by currency valuation since 2001. So far so good. 2009 economy is projected to be $16 trillion in the US. This has been helped by infrastructure build up financed by Fanny Mae and Freddie Mac. When people complained about housing bust, new housing starts slowed from 1.58 to projected 1.46 million new homes build this year. In 1997, we only improved to 870,000 new homes built, when economy was $8 trillion in US. Next year, our program is expanding the labor resources in the housing industry.
Most new housing is for demographic changes. Las Vegas is expected to double their population 4 years ago. Atlanta Ga. attracted rich professionals. And older towns have to refurbish the old houses. Population growth maybe always slow(less than 3% per year), but individual preferences created markets for one person's preference for cars and houses(half of our economy).
So, top down economists are overshadowed by microeconomists, when each individual is taken care of in the new economy. Economy is no longer tailored for large families(combined wealth), but individuals? |
