Category Archives: Macroeconomic policy

David Kotz: Understanding Contemporary Capitalism, Part I

“Neoliberalism,” or more accurately neoliberal capitalism, is a form of capitalism in which market relations and market forces operate relatively freely and play the predominant role in the economy. That is, neoliberalism is not just a set of ideas, or an ideology, as it is typically interpreted by those analysts who doubt the relevance or importance of this concept for explaining contemporary capitalism. Under neoliberalism, non-market institutions – such as the state, trade unions, and corporate bureaucracies – play a limited role. By contrast, in “regulated capitalism” such as prevailed in the post-World War II decades – in the United States and other industrial capitalist economies – states, trade unions, and corporate bureaucracies played a major role in regulating economic activity, confining market forces to a lesser role.

Soft Power Raises Exports

A nation’s hard power is based on its ability to coerce, while its soft power depends on the attractiveness of its culture, political ideals, and policies. This column shows that a country’s soft power has measureable effects on its exports. Countries that are admired for their positive global influence export more, holding other things constant.

Louis Proyect: A Brief Response to Joe Firestone on IT/Grexit

Why believing that there must be an easy way for Greece to pull of a Grexit does not make it so.

Greek Debt Sustainability: The Devil is in the Tails

The debate over Greek debt sustainability is muddied by the fact that different analysts use different definitions. But once you use realistic assumptions, as in “tails risks” are actually pretty likely, Greek debt is obviously not “sustainable”.

Will the Germans Derail the Tentative Greek Third Bailout?

Human dynamics, which over time played right into the Germans’ and other hardliners’ hands in the earlier chapters of the Greek bailout talks, may now be working against them.

Greece’s Debt Burden Can and Must be Lightened Within the Euro

A proposal for breaking Greece’s vicious debt cycle.

Debt Miracle: Why the Country that Borrowed the Most Industrialised First

Is debt really that bad? This column looks at the towering debts, rapid tax hikes, and constant state of war that led to Britain’s Industrial Revolution, showing that the devil is in the detail when assessing sovereign debt. When we consider the dangers of debt in today’s world, we should keep an eye on its potential benefits as well.

Why Debt Sustains Corruption in Greece and Vice Versa

This post makes important observations about how the elite levels of Greece engage in rent-seeking, aka corruption, and can continue those strategies even in the face of economic collapse, to the detriment to the rest of Greek society.

What’s Wrong with Inflation Targeting?

Macroeconomic policy focused on inflation targeting is likely to deliver neither macroeconomic stability nor economic development, aka sustainable growth.

IMF Throws a Spanner in Proposed Greece Deal, Says Debt Reduction May Not Be Enough

The IMF has dropped a big shoe before the Greek government has passed any of the legislation required as part of its pending bailout. But if this development leads to more wrangling, that means an even longer delay before Greek banks get any liquidity, which means continued strangulation of the Greek economy.

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Category Archives: Macroeconomic policy

David Kotz: Understanding Contemporary Capitalism, Part I

Soft Power Raises Exports

Louis Proyect: A Brief Response to Joe Firestone on IT/Grexit

Greek Debt Sustainability: The Devil is in the Tails

Will the Germans Derail the Tentative Greek Third Bailout?

Greece’s Debt Burden Can and Must be Lightened Within the Euro

Debt Miracle: Why the Country that Borrowed the Most Industrialised First

Why Debt Sustains Corruption in Greece and Vice Versa

What’s Wrong with Inflation Targeting?

IMF Throws a Spanner in Proposed Greece Deal, Says Debt Reduction May Not Be Enough

Grexit: Your Humble Guest Writer Talks to YSI INET

Old Economic Thinking is the Problem, Says BIS

The Washington Consensus and Long-Term Austerity in Latin America

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