Paul De Grauwe and Yuemei Ji (“Quantitative easing in the Eurozone”, VOX, 2015) have argued that quantitative easing (QE) can occur in the Eurozone without fiscal transfers. This may be the case, but their analysis is fundamentally misplaced, as it is based on incorrect, incomplete or missing premises. We think it would be a mistake for [...]
There has been much speculation in recent months whether the price of oil will continue its downward spiral to spine chilling levels – $20 per barrel springs to mind. One can almost sense a slight quiver in the voices of investors and oilmen when asked how they would cope with such a scenario. Some argue [...]
Brazil’s is an unusually closed economy as measured by trade penetration, with exports plus imports equal to just 27.6 per cent of GDP in 2013. Brazil’s large size is often used to explain its relative lack of openness. But this argument does not stand up to scrutiny: among the six countries with larger economies than [...]
The threat of a “real” demand-driven deflationary spiral in Europe has rattled markets. But is European deflation all bad or possibly benign?
Must ReadThoughts From Across the Atlantic
There was a dramatic transformation of the world energy market in 2014 as the price of crude oil was cut in half over a six month period. The price of West Texas Crude dropped from around $110 in June to $55 toward the end of December. Prices of natural gas and gasoline ($2.40 in December) [...]
We have a plausible future where profits, information and political power accrue to a small group of technology-driven oligopolies, while the rest are reduced to commoditized micro-entrepreneurship (techno-serf) roles.