Readers know that MMT-ers and Minskyans drive Paul Krugman crazy by insisting that banks really do “create money out of thin air”, and that his “deposit multiplier” story has got it all wrong. See my last post on that here: http://www.economonitor.com/lrwray/2014/02/19/minsky-on-banking-early-work-and-critiques-by-krugman-and-horizontalists-revisited/. The Bank of England has just released a series of papers that are more-or-less on [...]
After half a century of isolation, Myanmar’s immediate challenge is to sustain reforms, boost foreign investment and diversify its industrial base. Unlike other Asian tigers, it must cope with a far more challenging international environment. Recent headlines from Myanmar have caused unease in the United States, Europe and Japan. While the controversies are social by [...]
Private investors and the government don’t always make easy bedfellows and nothing exemplifies this more than the case of Fannie Mae and Freddie Mac. After verging on collapse in 2008, the government-backed mortgage groups are now turning significant profits, but investors are not happy. Since their inception, the structure of Fannie and Freddie has been [...]
Crisis in Crimea
The conflict between Russia and Ukraine escalates, evoking fond memories of the Cold War.
Must ReadEmerging Markets
NEW YORK – One definition of an emerging-market economy is that its political risks are higher, and its policy credibility lower, than in advanced economies. After the financial crisis, when emerging-market economies continued to grow robustly, that definition seemed obsolete; now, with the recent turbulence in emerging economies driven in part by weaker economic-policy credibility [...]
Megabanks’ stock prices continue to climb, as investors have realized that the further the financial crisis fades into the rear-view mirror, the more easily these firms can find new sources of profit by exerting market power and skirting regulations.