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Global Macro Channel: Latest Posts
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Global Macro
How Europe’s Double Dip Could Become America’s
Europe is in recession. Britain’s Office for National Statistics confirmed on Wednesday that in the first quarter of this year Britain’s economy shrank .2 percent, after having contracted .3 percent in the fourth quarter of 2011. (Officially, two quarters of shrinkage make a recession). On Monday Spain officially fell into recession, for the second time [...]
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Global Macro
The Robot Revolution Arrives, and the World Changes
Summary: The first signs of the robot revolution have appeared, a trend that will reshape our world — automation moving from manufacturing into the service industries. Economists see the evidence but are blinded by their biases. This post provides excerpts from a new book about the revolution, and some interesting observations. This post is the fifth in [...]
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Global Macro
The Week Ahead
The week ahead will be eventful. There will be something for everyone. There is plenty of economic data. There are a few central bank meetings and there of course will be a heavy dose of politics. Politics is a good place to begin. The Dutch government collapsed on Saturday as the Freedom Party withdrew its [...]
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The Kapali Carsi
Don’t Make Central Banking Interesting
There wasn’t much new about the Central Bank of Turkey’s rate-setting decision last week other than the revelation that “additional monetary tightening may be implemented more frequently in the forthcoming period.” Here’s the intro. to my latest Hurriyet Daily News column. You can read the rest at the Daily News website. BTW, if you are [...]
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Global Macro
Making Goldilocks Happy – Finding the Right Balance for Public Spending
When it comes to adjusting public spending, getting the balance right is important. Fiscal adjustment is taking place in economies around the world, but risks remain high. Bringing debt and deficits down to more moderate levels is important to easing risks. From one perspective, the sooner this happens, the better. But, slashing budgets too abruptly [...]
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Global Macro
Global Financial Stability: What’s Still to Be Done?
The quest for lasting financial stability is still fraught with risks. The latest Global Financial Stability Report has two key messages: policy actions have brought gains to global financial stability since our September report; but current policy efforts are not enough to achieve lasting stability, both in Europe and some other advanced economies, in particular [...]
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Global Macro
A Call for Greater Coordination Between Monetary and Fiscal Policy
Olivier Blanchard in these columns (‘Mediocre Growth, High Risks, and the Long Road Ahead’, April 18) rightly points to the fact that ‘Fiscal consolidation is needed and is proceeding, but is weighing on growth’. He goes on to assert that there is ‘… pressure from markets for immediate fiscal consolidation.’ Blanchard suggests that ‘A search [...]
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Global Macro
Mediocre Growth, High Risks, and the Long Road Ahead
For the past six months, the world economy has been on what is best described as a roller coaster. Last autumn, a simmering European crisis became acute, threatening another Lehman-size event, and the end of the recovery. Strong policy measures were taken, new governments came to power in Italy and Spain, the European Union adopted [...]
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Finance & Markets
Keen: Instability in Financial Markets
Steve Keen’s talk at INET is now up on the web (hat tip BT). His talk is billed as involving a discussion of “Instability in Financial Markets”. It also comes over as a primer on the economic approach of economist Hyman Minsky. In the session, Steve argues that one cannot model Minsky using a New [...]
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Global Macro
Jim Yong Kim For The World Bank
A decision on choosing the next president of the World Bank is expected this week – perhaps as early as Monday. The Obama administration nominated Jim Yong Kim, president of Dartmouth College and a noted public health expert. The reaction to this nomination from development economists and people experienced in the business of lending to [...]
