Tag Archives: Keynesian
Wolf of the City
Martin Wolf’s recent radio programme – “How Low can Rates Go?” – described and illustrated the dilemmas facing monetary policy-makers. Nine years from the start of the great financial crisis, Wolf reported, economies had still not returned to “normal”. Capitalism was perceived by many to be failing to deliver; globalisation a con trick. The political…
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The Battle of Bretton Woods
Yesterday I kicked off a round-table discussion organised by the CSFI of Benn Steil’s new book which carries this title. This is what I said. Benn Steil starts this stimulating book by poking fun at those politicians and others who have, in recent years, called for “a new Bretton Woods”. They have all been disillusioned….
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How to control those central bankers
Last Tuesday I went along to the Adam Smith Institute to listen to Brendan Brown launch his new book, “The Global Curse of the Federal Reserve”. Brendan picked out three channels through which central banks’ ultra-low interest rate polices can trigger asset price inflation (followed invariably by a crash): Central bank pegging of…
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Gordon Brown on stubborn national politics
Gordon Brown is far from being my favourite politician. As economic Czar of Britain’s Labour government from 1997 to 2007 he started well – struggling hard and long to establish fiscal credibility – only to throw it all away. He then spent a miserable three years as prime minister to 2010 trying to contain the…
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Keynes, Mundell and The Money Trap
Most economic commentary, such as that of Roubini, falls into this category (see Diary of 21/11/12). The “analysis” amounts to saying: “Oh, what a mess we are in!” We knew that already. Some vary their message by claiming to detect chinks of light in the gloom. Others conclude by saying things like, “If only the…
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Countries in mutual suicide pact
The appalling UK GDP figures, which mark the longest period of contraction for 100 years, plus the weakening of US and Euro area economies, provides yet further evidence that current policies everywhere are failing. Yet the debate on what to do is getting nowhere. The sterile argument between Keynesian expansionists and advocates of austerity continues. That…
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What the G20 should do at Los Cabos
“The global recovery has stalled again as confidence in policy makers’ ability to provide conditions for growth has slipped away” writes Chris Giles of the Financial Times, in his report from Los Cabos on the opening day of the G20 meeting there. According to the latest FT/Brookings Institution Tiger Index, world economic growth is stalling…
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