![]() On average, the number of shows that have been broadcast during prime time by the three main networks ( CBS, NBC and ABC) per season has ranged between 63 and 75 shows between the 1987-02 seasons. It was the repeal of fin-syn that ultimately made newer broadcast networks such as UPN and The WB financially interesting for their highly vertically integrated parent media conglomerates Paramount Pictures ( Viacom) and Time Warner, respectively. Following the severe changes in the television landscape, such as the rise of the Fox network and cable television, the Financial Interest and Syndication Rules were abolished completely in 1993. Ĭontroversial from the very beginning, the fin-syn rule was relaxed slightly during the 1980s. The rules also led to the destruction of numerous older television tapes in the 1970s what could not be sold or given away to an independent syndicator was thrown out or recycled to recover silver content. Others argue the rules made the work of independent television production companies much more difficult because smaller companies could never afford the deficit financing required unless they received network assistance. Some argue the rules brought about a golden era of independent television production by companies such as MTM Enterprises ( The Mary Tyler Moore Show) and Norman Lear's Tandem Productions ( All in the Family). The rules changed the power relationships between networks and television producers, who often had to agree to exorbitant profit participation in order to have their shows aired. The rules also led to the networks spun-off their syndicated divisions, like CBS' CBS Enterprises was later renamed as Viacom in 1971 and later spun-off, ABC's ABC Films was sold to its five executives and later renamed as Worldvision Enterprises and NBC's syndicated division NBC Films was later sold to National Telefilm Associates for $7.5 million, both occurred in March 1973. The rules also prohibited networks from airing syndicated programming they had a financial stake in. The FCC sought to prevent the Big Three television networks from monopolizing the broadcast landscape by preventing them from owning any of the programming that they aired in prime time. The Financial Interest and Syndication Rules, widely known as the fin-syn rules, were a set of rules imposed by the Federal Communications Commission in the United States in 1970. The result is an interest-rate spiral that is more damaging to world output and employment than these countries may wish to see collectively.Set of rules imposed by the Federal Communications Commission in 1970 If the BOE and ECB respond by further raising their interest rates, they export a bit of extra inflation back to the United States and to other economies. For example, when the Fed raises its interest rate, if the BOE and the ECB do not respond, the pound and the euro would depreciate against the US dollar, leading to higher import prices and adding to the already high inflation. ![]() The problem with this approach is that an interest-rate hike by any major central bank has the effect of exporting inflation to other countries, forcing other central banks to raise interest rates more than they otherwise would have done. Across the Atlantic, the European Central Bank and the Bank of England have also vowed to raise interest rates to deal with the highest inflation seen in decades. To ensure that inflation expectations remain anchored at a low level, the Fed would prefer to err on the side of being too aggressive, rather than risk doing too little. For example, in view of the US Federal Reserve’s prolonged underestimation of the persistence of US inflation, Chair Jerome Powell’s recent vow to continue hiking rates, despite the risk of recession, seems reasonable. This scenario can still be avoided, but the window of opportunity is closing.Īggressive interest-rate increases designed to combat high inflation at home make sense in isolation. NEW YORK – The world is facing the risk that major central banks will undertake competitive interest-rate hikes that may look desirable for their countries individually but could drag the world economy into an unnecessary recession.
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