It has become increasingly evident over the last two years that the growth engine of the Brazilian economy has run out of steam. Despite relative resilience during the global financial crisis and following a quick recovery, economic growth registered just 1 percent in 2012 and a meager 2.5 percent in 2013. More recently, the economy … Read more
The reports of my death have been greatly exaggerated. –Mark TwainStephanie Kelton Goes To Washington Leading Post Keynesian Modern Monetary Theorist (MMT) and Chair of the Economics Department at the University of Missouri-Kansas City (UMKC) is leaving there to become the Chief Economist of the Minority at the US Senate Budget Committee. She is reported … Read more
My paper “Instability in Financial Markets: Sources and Remedies” for the INET conference “Paradigm Lost: Rethinking Economics and Politics“, to be held in Berlin on April 12-14, is now available via the INET website. If you’d like to download it, you can get it either from my INET page, or from a link on the … Read more
I highly recommend a movie to be released next year (that is, the year that begins next week). Terry Jones, of Monty Python fame, is one of the key developers of the film. It is on the Global Financial Crisis, but also provides a quick history of bubbles and crashes. It is highly entertaining and … Read more
If you thought the Eurozone crisis was coming to an end this week, this column argues that we may barely be reaching the end of Act One. Act Two in the unfolding Eurozone drama begins this week as leaders at the European summit announce emergency measures to prevent further market turmoil. Why the sudden urgency? … Read more
Key takeaway – Prime Minister (PM) Erdoğan will win the Presidential elections in the first round, with 52 percent of the vote. Emboldened by popular support, over the next five years he will actively rule the country and re-shape key institutions to consolidate Presidential power. Tensions will rise internally and externally. The opposition will condemn … Read more
This column finds that current monetary and fiscal policies are misplaced and are largely impotent. It is argued that greater coordination between monetary and fiscal policy could provide substantial policy synergies needed to stimulate economic growth without increasing public debt. Practical policy options are reviewed. Current austerity and quantitative easing policies are proving ineffective in … Read more
The popular story has it that the recent woes of the Russian ruble can be explained by a mix of decreasing oil prices and sanctions imposed by the West as a result of Russia’s aggression in Ukraine. This appeared to hold until November. Various sanctions have been in force for some months now and until … Read more
Key takeaway – Over the next five years, Turkey’s growth is expected to decline from 5.1 (10-year average) to 3.9 percent, still a solid performance when compared to most peers. Inflation and policy rates are expected to remain elevated, at around 6 and 8 percent, respectively. The USDTRY is likely to depreciate, from 2.1 to … Read more
What is a Bitcoin? Introduced in 2009 as a peer-to-peer payment system, the bitcoin developed into a digital currency (BTCs). Today, the BTC is a financial network able to both transfer and create money. BTCs issuance and use is decentralized (see below), and loosely regulated by the Bitcoin Foundation, a non-profit organization. As BTCs are … Read more