11th January 2012
"Based on a study of nearly 200 recession episodes in 14 advanced countries between 1870 and 2008, we document a new stylized fact of the modern business cycle: more credit-intensive booms tend to be followed by deeper recessions and slower recoveries." That's the conclusion of three economists who looked at recessions over a 138 year period. Wonk Blog
Simon Wren-Lewis says the problem macroeconomists have with fiscal policy is not so much about the validity of the theory "but instead with the fact that it represents intervention by the state designed to improve the working of the market economy." He goes on to say that such ideological views can lead to mistakes in policy making. Mainly Macro
Kermel Davis: Despite years of official talk about addressing global current-account imbalances, they remained one of the world's main economic concerns in 2011. Indeed, some are increasing again, alongside inequality in many countries – a link that is no accident. Project Syndicate
Bill Mitchell talks about the long standing obsession with structural reform as a way to solve high unemployment. "The structural reform agenda has zero credibility in the same way that fiscal austerity has zero credibility." Billy Blog
Ahead of annual WEF meeting in Davos, Global Risks 2012 report says the 'seeds of dystopia' are being sown. "For the first time in generations, many people no longer believe that their children will grow up to enjoy a higher standard of living than theirs." The Guardian
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