Joseph Stiglitz recently dismissed the relevance of secular stagnation to the American economy, and in the process attacked (without naming me) my work in the administrations of Presidents Bill Clinton and Barack Obama. I am not a disinterested observer, but this is not the first time that I find Stiglitz’s policy commentary as weak as his […]
Winning An Election Does Not Entitle One To Upend Basic Values
I will never again use the term “political correctness.” Whatever rhetorical value the term may have once had is far more than offset by what has been unleashed in the name of resistance to it since the US presidential election. I have made no secret over the years of my conviction that the sensitivities of individuals or […]
Voters Deserve Responsible Nationalism Not Reflex Globalism
It is clear after the Brexit vote and Donald Trump’s victory in the Republican presidential primaries that voters are revolting against the relatively open economic policies that have been the norm in the US and Britain since the second world war. Populist opposition to international integration is on the rise in much of continental Europe and has always […]
The Economic Consequences Of A Trump Win Would Be Severe
On June 23, the UK will vote on whether to remain in the EU. On November 8, the US will vote on whether to elect Donald Trump as president. These elections have much in common. Both could lead to outcomes that would have seemed inconceivable not long ago. Both pit angry populists against the political […]
Europe Is Right To Kill Off The Criminal’s Favourite Banknote
Most of the time I use this column to recommend policy changes that I believe would make the world a better place. This time I am saluting a policy change I believe will have significant benefits – one that carries with it important lessons. The decision of the European Central Bank last week to stop producing […]
Global Trade Should Be Remade From The Bottom Up
Since the end of the second world war, a broad consensus in support of global economic integration as a force for peace and prosperity has been a pillar of the international order. From global trade agreements to the EU project; from the Bretton Woods institutions to the removal of pervasive capital controls; from expanded foreign direct investment to increased […]
Corporate Profits Are Near Record Highs. Here’s Why That’s A Problem
As the cover story in this week’s The Economist highlights, the rate of profitability in the United States is at a near-record high level, as is the share of corporate revenue going to capital. The stock market is valued very high by historical standards, as measured by Tobin’s q ratio of the market value of the nonfinancial corporations to the value of […]
Trump’s Rise Illustrates How Democratic Processes Can Lose Their Way
While comparisons between Donald Trump and Mussolini or Hitler are overwrought, Trump’s rise does illustrate how democratic processes can lose their way and turn dangerously toxic when there is intense economic frustration and widespread apprehension about the future. This is especially the case when some previously respected leaders scurry to make peace in a new […]
Increasingly Convinced Of The Secular Stagnation Hypothesis
Foreign Affairs has just published my latest on the secular stagnation hypothesis. I am increasingly convinced that it captures what is going on in the industrialized world and that the risks of long term weakness on the current policy path are growing. Unfortunately since I put forward the argument in late 2013, the data have […]
No Free Lunches But Plenty Of Cheap Ones
Trade-offs have long been at the center of economics. The aphorism “there is no such thing as a free lunch” captures a central economic idea: You cannot get something for nothing. Among the many trade-offs emphasized in economics courses are guns vs. butter, public vs. private, efficiency vs. equity, environmental protection vs. economic growth, consumption […]
