We knew the euro was a bad idea in 1961

26th July 2012

We knew the euro was a bad idea in 1961

Dom Boyle argues that the dangers of currency unions are not only now emerging: they have been a central part of international macroeconomics literature for over half a century, since Robert Mundell's seminal paper on "Optimal Currency Areas" in 1961. New Statesman


The U.S. Economic Policy Debate Is a Sham

Is the debate in Washington about economic policy phony, manufactured and entirely political? Yes, because there's remarkable consensus among mainstream economists, including those from the left and right, on most major macroeconomic issues. Bloomberg View


Fiscal paradoxes

The arguments that were put forward by governments pursuing "austerity" programs – that unless we become more like Sweden and radically cut back on government spending there will never be a sustainable private sector – ignore the fact that social security payments as a percentage of GDP in Sweden were much greater than in either the UK or Spain. Macro Matters


Global wealth inequality

A global wealth pyramid by Credit Suisse shows that at the bottom of the pyramid, 67% of the world's population hold roughly 3.3% of total wealth, while at the top of the pyramid, 0.5% of the population hold about 38% of the wealth. Unsurprisingly, the poor were in Africa and India, while the wealthy were in the US, Europe and Japan. Naked Keynesianism


Lesser expectations

Even though the slowdown in emerging markets can be blamed on events elsewhere, the problem may not simply be a demand-side phenomenon; the underlying rate of sustainable growth may also be less impressive than previously thought. The Economist


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