The Politics Of Economic Stupidity
In 2014, the world economy remained stuck in the same rut that it has been in since emerging from the 2008 global financial crisis. Despite
Economy
Analysis and debate on the European economy: growth and investment, fiscal and monetary policy, trade, industry and inequality.
Can Insecure Workers Be Confident Consumers?
A paradox that lies at the heart of capitalism is that economies need consumers to be confident spenders of money on the one hand, while
Economics Has To Come To Terms With Wealth And Income Inequality
Nobel laureate Joseph Stiglitz has been writing about America’s economically divided society since the 1960s. His recent book, The Price of Inequality, argues that this
Good And Bad Inequality
In the pantheon of economic theories, the tradeoff between equality and efficiency used to occupy an exalted position. The American economist Arthur Okun, whose classic
Why The Structural Deficit Does Not Exist
A few days ago the Italian government objected to the way that putative technocrats at the European Commission calculated their country’s “structural deficit”. To all
The Global Economy And The Return Of Currency Wars
The recent decision by the Bank of Japan to increase the scope of its quantitative easing is a signal that another round of currency wars
Creativity, Corporatism, And Crowds
Economic growth, as we learned long ago from the works of economists like MIT’s Robert M. Solow, is largely driven by learning and innovation, not
The Single-Engine Global Economy
The global economy is like a jetliner that needs all of its engines operational to take off and steer clear of clouds and storms. Unfortunately,
The Moral Economy Of Debt
Every economic collapse brings a demand for debt forgiveness. The incomes needed to repay loans have evaporated, and assets posted as collateral have lost value.
The EU Recovery That Never Was
Economic recovery in the Eurozone is not delayed. It is non-existent. The Financial Times for the first day of October carried several articles assessing the
The ECB’s Faulty QE Weapon
The discussion has so far followed easily predictable national patterns: Creditor countries do not object to deflation, because it increases the real value of their
Stop Structural Reforms And Start Public Investment In Europe
Slow growth in the Eurozone has become endemic since the start of the sovereign debt crisis in 2010. This is made very clear in Figure
Is The Eurozone Turning Into Germany?
It has been pretty clear since at least the spring of this year that the ECB was keen to see the euro weakening. At the
Charting Decline In Europe
Two years have passed since Mario Draghi promised to do “whatever it takes” to save the euro. The bond markets have calmed down but the
The Rebirth Of Stakeholder Capitalism?
In recent weeks, the managers, employees, and customers of a New England chain of supermarkets called “Market Basket” have joined together to oppose the board
Securing The Middle Class In The Internet Age
Ten years ago, the world emerged from the dot-com bust and started to look more soberly at the Internet’s potential. While speculative greed and fear