In 1979, the publication of Harvard sociologist Ezra Vogel’s international best-selling book Japan as Number 1signalled the nation’s arrival as an economic power. Today, Japan’s industrial and economic decline is palpable. But in 2012, Japan’s Nikkei 225 stock average rose by around 23%. Much of the increase reflects faith in the reflation strategy of second time … Read more
Financial conditions in the eurozone have significantly improved since the summer, when eurozone risks peaked because of German policymakers’ open consideration of a Greek exit, and the sovereign spreads of Italy and Spain reached new heights. The day before European Central Bank President Mario Draghi’s famous speech in London in which he announced that the … Read more
Commentators often portray the Baltic countries as laboratories for testing the effects of austerity under fixed exchange rates. Although they share many common traits, Lithuania, Latvia, and Estonia have each followed distinctive paths during the global economic crisis. Estonia maintained tighter fiscal discipline going into the crisis, helping it to win entry into the Euro. … Read more
Anyone who thinks congressional Republicans will roll over on the debt ceiling or gun control or other pending hot-button issues hasn’t been paying attention. But the President can use certain tools that come with his office – responsibilities enshrined in the Constitution and in his capacity as the nation’s chief law-enforcer — to achieve some … Read more
I’m sure I’m not the only one who uses my mobile phone for almost everything but to make a call. Thanks to technological advances and the explosion of social media, we text, tweet or do Facebook posts on our devices. But beyond mere communications tools, mobile phones are also crucial for fostering economic activity and … Read more
Looks like Goldman is going to lose the bid for Treasury. The WashPost reports Citi is going to get it. http://www.washingtonpost.com/business/obama-said-to-name-jack-lew-to-replace-geithner-at-treasury/2013/01/09/3256b2c4-5a71-11e2-b8b2-0d18a64c8dfa_story.html?wpisrc=al_comboPNE_b Oh, I know that Timmy Geithner was not technically an employee of Goldman, but recall that Mayor Bloomberg–like everyone on Wall Street–presumed he was working for Goldman. And he denied that he was ever … Read more
The Platinum coin has been all over the blogosphere as well as the media. Some have been arguing it will cause hyperinflation. How can issuing a coin to be held at the Fed to allow the Treasury to spend up to budgeted amount lead to hyperinflation? It has no first round effect that is different … Read more
The US Office of the Comptroller of the Currency (OCC) and the US Federal Reserve agreed today that for now and forever they would not hold banks accountable for illegal activities related to stealing homes from Americans. http://www.rianovosti.com/business/20130108/178635935/US_Foreclosure_Settlement_Angers_Wall.html They made clear that the rule of law is no longer a rule of law in the … Read more
The natural gas revolution has brought big changes to the U.S. energy scene. Natural gas prices, which used to move closely together with oil prices, have plunged in the last five years, as the following chart shows. One result has been the rapid displacement of coal by natural gas in electric power generation. According to … Read more
FDL Book Salon Welcomes L. Randall Wray, Modern Money Theory: A Primer on Macroeconomics for Sovereign Monetary Systems Saturday, January 5, 2013 1:55 pm Pacific time Welcome L. Randall Wray (Modern Money and Public Purpose) (EconoMonitor.com) and Host William K. Black, UMKC Economics, Law (New Economic Perspectives) Modern Money Theory: A Primer on Macroeconomics for … Read more