Differences
According to saltwater economic theory, the government has an important 'discretionary' role to play in order to actively stabilize the economy over the business cycle.
Researchers associated with "the freshwater school" found that government economic policies are of utmost importance for both the economy's abilities to respond to shocks and for its long-term potential to provide welfare to its citizens. These economic policies are the rules and structure of the economy. They might be how markets are regulated, what government insurance programs are provided, the tax system, and the degree of redistribution, etc. Most researchers that have been associated with "the freshwater school" have, however, found it hard to identify mechanisms through which it is possible for governments to actively stabilize the economy through discretionary changes in aggregate public spending.
Read more about this topic: Saltwater And Freshwater Economics
Famous quotes containing the word differences:
“Traveling, you realize that differences are lost: each city takes to resembling all cities, places exchange their form, order, distances, a shapeless dust cloud invades the continents.”
—Italo Calvino (1923–1985)
“What we have to do ... is to find a way to celebrate our diversity and debate our differences without fracturing our communities.”
—Hillary Rodham Clinton (b. 1947)
“Quintilian [educational writer in Rome about A.D. 100] hoped that teachers would be sensitive to individual differences of temperament and ability. . . . Beating, he thought, was usually unnecessary. A teacher who had made the effort to understand his pupil’s individual needs and character could probably dispense with it: “I will content myself with saying that children are helpless and easily victimized, and that therefore no one should be given unlimited power over them.””
—C. John Sommerville (20th century)