Yesterday Greek voters overwhelmingly rejected the policies of extreme austerity favored by its Eurozone partners. Yes, Greece’s problems are, at least in part homemade. No outside powers forced it to run the excessive deficits that fed an overheated boom in the years leading up to the global crisis. But the draconian fiscal consolidation to which [...]
I am among those economists who have argued that expansive fiscal policy has been missing as a lever to support recovery in advanced economies, especially in the Eurozone – see here and here. At the same time, I have cast doubts on recent attempts of using it to prop up growth in some emerging markets – see here and here in the [...]
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 [...]
The threat of a “real” demand-driven deflationary spiral in Europe has rattled markets. But is European deflation all bad or possibly benign?
Must ReadFinance & Markets
Recent economic data on wages, retail sales, and oil and other trade prices have severely undermined the blind confidence of equity markets that prevailed in 2014, and present market conditions are not likely to reverse themselves soon. 2014 was the battle of the cyclicalists vs. the secularists, in both markets and economic data, and that [...]
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.