Year: 2013
From Contagion to Incoherence: Toward a model of the unfolding Eurozone Crisis
, 05/03/2013
This post offers readers a fully-fledged analytical model of the unfolding Eurozone Crisis. It begins with a macro-economic analysis of the Crisis’ causes and then, importantly, models the feedback between Europe’s institutional and policy responses and the contagion process that began with Greece. For the fully-fledged (wonkish) version of the paper, click here. What follows below […]
On the social conditions in Greece, now
, 04/03/2013
In preparation for a radio interview on ABC Radio National, I was asked the following questions on the situation on the ground in Greece. Thought I should share my answers with you. Will keep you posted re. the actual interview.
At the OECD, Paris, this Friday 1st March, speaking to: "The Euro Crisis, Asia's Woes and America's Dilemma in a Global Context"
, 26/02/2013
This coming Friday, 1st March, I shall be addressing the OECD on the need to re-think the Euro Crisis, Asia’s angst and America’s conundrum. My argument will be that markets cannot be trusted to correct the global imbalances underpinning our collective woes. Political action is needed at a global scale. Correction: In the original post, […]
On spontaneous order, Valve, the future of corporations, Hume, Smith, Marx and Hayek: A one hour chat with Russ Roberts on ECONTALK
, 25/02/2013
There is nothing more heartwarming than mutually beneficial exchanges with intellectually curious people with whom one disagrees strongly on some matters while sharing strong views and common concerns on others. Russell Roberts is Professor of Economics at George Mason University, and a Chicago PhD holder. Besides his academic credentials, he is the host of ECONTALK, a […]
Europe needs a hegemonic Germany
, 22/02/2013
For six decades Germany was being pampered by a hegemonic America that oversaw the write-off of its wartime debts, the reversal of Allied designs to de-industrialise it and, above all else, the constant generation of the global demand which allowed German manufacturers to concentrate on efficiently producing quality, desirable wares.
Economic illiteracy in the service of economic misanthropy: An Econ 101 reminder of the meaning of the multiplier for austerians
, 19/02/2013
Here is a quote from a recent pro-austerity article in an Establishment Greek newspaper: “Let us not forget that [Greece’s] primary surplus in 2009 was 10% and the result was a recession of 2.8%. Thus the fiscal multiplier was -3.5, not 0.5, not 0.75, not 1.7!” The author’s purpose, of course, was to argue that the […]
Guest post: The Crisis as a repercussion of global imbalances, by Peter Dorman
, 19/02/2013
Peter Dorman wrote this piece in 2009 shortly after the financial implosion and has recently revised it. While I agree with almost all of what he has to say, one comment seems to me pertinent: The global rebalancing which Peter mentions, toward the paper’s end, is (a) uncertain and, to boot, (b) certain, if it happens, […]
On the Global Minotaur’s Recycling Loop: An elementary comparison of US-German and Intra-Eurozone trade & capital flows
, 17/02/2013
This post was occasioned by a reader’s (Alejandro Calve Seferian) query: Why do I presume that an accelerating US trade deficit required an offsetting tsunami of net capital flows, from the Rest of the World to the US, in order to ‘close the loop’ and, thus, provide long term aggregate demand to the Rest of […]
A discussion with Evergreen College students on the state of the global economy
, 15/02/2013
Yesterday, 14th February 2013, I spent a wonderful 75 minutes visiting a wonderful class of students at Evergreen College – the inverted commas denoting that I did so from… Austin, using the excellent AV facilities of both Evergreen and the LBJ Graduate School of Public Affairs (thanks are due to the excellent support staff on both ends). […]
"Real lessons from virtual worlds", article by Amie Tsang in the Financial Times
, 14/02/2013
The Financial Times‘ Amie Tsang has just published this article in which she discusses the extent to which digital economies, in particular the ones that evolve within multi-player video games, have the power to elucidate ‘real’ world economic processes. The reader may enjoy reading her article in conjunction with Gabe Newell’s recent talk and, perhaps, […]
Are Ireland and Portugal out of the woods? An updated version
, 12/02/2013
This post is an updated version of the previous one, addressing some of the points raised by Wolfgang Munchau in this article published since in the Financial Times. Ireland and Portugal have, recently, tested the water of the money markets with some success. Portugal has issued 5-year bonds and Ireland is in the process of […]
Are Ireland and Portugal out of the woods?
, 10/02/2013
Ireland and Portugal have, recently, tested the water of the money markets with some success. Portugal has issued 5-year bonds and Ireland is in the process of converting its unbearable promissory notes into long-term bonds, to be sold to the private sector. So, on face value, two of the so-called ‘program’ Eurozone countries, wards of […]
European Banking Union: Behind the rhetoric
, 09/02/2013
On 8th February 2013, the Texas International Law Journal organised a conference on the theme of The Nation State and its Banks. Click here for the full program. The organisers were kind enough to invite me to give the lunchtime talk, which I chose to be European Banking Union: Behind the rhetoric. You can here an […]
The Global Minotaur reviewed in the Calcalist (in Hebrew) by Uri Pasovsky
, 08/02/2013
As the second edition of my The Global Minotaur is about to hit the bookstands, Uri Pasovsky just published an extensive review of it in Calcalist, the leading Israeli business daily. Thanks Uri. Click here for the review.
More on economics' methodological cul-de-sac: a paper by S. Holland and T.C. Oliveira
, 08/02/2013
Since a couple of recent posts have burdened you with my own musings on the intellectual fraud masquerading as economics (the neoclassical tradition that dominates economic theory and policy), I thought of completing a trifecta with a paper by Stuart Holland and Teresa Carla Oliveira which argues that economics will not evolve unless it recovers some of Smith and […]
The neoclassical economist as playwright
, 05/02/2013
In my previous post I explained that, over the past few weeks, I was frantically putting the finishing touches on a hopelessly academic book that reflects on my personal experiences with neoclassical economics; primarily through the lens of my own work which attempted to engage neoclassical colleagues on labour economics, game theory and political economy. […]
Economic Indeterminacy – the cause of my (relative) silence
, 03/02/2013
Regulars may have noticed that I have gone relative quiet recently. It is true! The reason is that I am struggling to put the finishing touches on an academic book entitled ECONOMIC INDETERMINACY: A personal encounter with the economists’ most peculiar nemesis (to be published by the good people of Routledge). As I have well […]
Gabe Newell on ‘Productivity, Economics, Political Institutions and the Future of Corporations’ – the video link
, 01/02/2013
On 30th January, Gabe Newell gave a talk at the University of Texas, Austin, with the above title. Click here for an abstract and a description of the motivation behind the talk. The video of his talk is now available below:
In memory of Frank Hahn, a rare jewell of a neoclassical economist
, 30/01/2013
Having just received the news of Frank Hahn’s passing, from my friend and colleague Nicholas Theocarakis, I felt the obligation to share Nicholas’s email with all of you. Those of us who knew and worked with Frank Hahn can only second Nicholas’ points. At least I do. Until time permits a long, considered assessment of […]
Why is the 2009 Greek government deficit probed by the courts, again?
, 29/01/2013
Greek judges are, again, moving against Mr Georgiou, the Head of ELSTAT (the revamped Greek national statistics bureau). Why is this happening? And what does it signify?
Gabe Newell on 'Productivity, Economics, Political Institutions and the Future of Corporations': 30th January, University of Texas at Austin
, 28/01/2013
In recent months, as some of you know, I have been working with Gabe Newell (of Valve Corporation) exploring the social economies that have spontaneously emerged within the vast and intriguing communities of video game players. Convinced that students of economics, politics and public policy in general have a great deal to learn from this […]
Some of us always said it: Grexit was an incredible threat
, 27/01/2013
So, Grexit is off the table, at least for now. Well, it was really never on the table, as some of us have been shouting from the rooftops for years now. Back in May 2011, I was writing here that the whole idea of expelling Greece from the Eurozone was based on “an incredible treat”; on […]
How can Europe overcome the crisis – by Robert Misik
, 23/01/2013
“The euro zone slips into the Merkel-recession”, writes Robert Misik in the German Trades Union Federation’s magazine AGAINST APERTURE. But, he adds, there are realistic alternatives. Some economists have developed ambitious plans. The DGB a Marshall Plan for Europe is one such. Click here to go to Misic’s webpage or read on…
Greek unemployment: Interviewed by John Doyle, ABC Radio National
, 15/01/2013
Unemployment in Greece is now at a staggering 27%, but behind all the statistics and the ongoing international drama there lies a major human tragedy and an ongoing European Crisis that is ravaging the continent like an unstoppable bushfire. Click: RN Breakfast Tue 15th Jan 2013 – Greek unemployment