Policy and Magic Bullet

gdp: Well, that's what I thought, until I started looking at the data, according to The Japan Times. No, it is definitely not the standard macroeconomic policy tool kit that delivers sustained prosperity. Surely, there is no magic bullet that ensures sustainable growth. Although useful for short-term growth boosts and asset price volatility, neither fiscal policy nor monetary policy has a consistently positive and lasting track-record. ; In fact, monetary policy stands particularly exposed to diminishing rates of returns of its actions Ten years ago, 1 created by the Bank of Japan generated 10 of national income or GDP, but today the same 1 from the central bank creates only 1 of GDP. Call it quantitative easing or call it qualitative easing, the empirical evidence is overwhelmingly strong that money alone does not create lasting growth and prosperity. Across all the major economies, tracked over the past 50 years, the best correlation and positive causality to explain per-capita GDP growth is the percentage of entrepreneurs in the population. Simply put Giving our children more pocket money does not increase our chances of having a stable pension income in the future although obviously the kids may well have more fun in the meantime . So where does sustained growth come from One word entrepreneurship. (news.financializer.com). As reported in the news.