Category Archives: Macroeconomic policy

Philip Pilkington: Monetary Policy and Metaphysics – How Economists Try to Naturalise Terrible Policies and Disappear Into Their Own Theories

Yves here. Philip Pilkington makes an interesting argument in this post, namely, that the method preferred among mainstream economists for managing the economy encourages investors to speculate in financial instruments rather than invest in real economy assets and projects.

Dan Kervick: Will We Be the Lamest Generation?

Yves here. Any post that starts out by making fun of Matt Yglesias already has something going for it. But one bit I quibble with. Kervick suggests that Social Security might be excluded from a Grand Bargain. Don’t get too optimistic.

Why the Fiscal Cliff is a Scam

This is a very good, high level interview of Jamie Galbraith by Paul Jay of Real News Network. It explains how the fiscal cliff scare was created and why Obama and the Republicans are united in fomenting a false sense of urgency. This is the sort of piece I’d suggest sharing with friends and relatives who’ve been unable to miss the news coverage and want to get up to speed.

Obama Calls on Citizens to Ask Congress to Slit Their Throats

If this weren’t so terrible, it would be funny.

9 Greedy CEOs Trying to Shred the Safety Net While Pigging Out on Corporate Welfare

By Lynn Parramore, a senior editor at Alternet. Cross posted from Alternet

A gang of brazen CEOs has joined forces to promote economically disastrous and socially irresponsible austerity policies. Many of those same CEOs were bailed out by the American taxpayer after a Wall Street-driven financial crash. Instead of a thank-you, they are showing their appreciation in the form of a coordinated effort to rob Americans of hard-earned retirements, decent medical care and relief for the poorest.

Marshall Auerback: Even a Deal on the Budget is Bad for the American Economy

Yves here. One of the frustrating aspects of the Great Catfood Debate is that it boils down to not whether, but how much, catfood you get in your future. Marshall Auerback explains why any of the proposed outcomes to the budget negotiations will slow growth and possibly produce a recession.

Hugh Hendry: ‘We’re in the death spiral of mercantilism’

You have to give a fund manager points for admitting to having a “history of contentious posturing.” Hugh You have to give a fund manager points for admitting to having a “history of contentious posturing.” Hugh Hendry’s also a reformed gold bug, which shows an unusual flexibility of thinking (once people join the gold cult, they seldom leave). Even if you don’t necessarily agree, his talk will serve as a useful grist for thought (hat tip Ian Fraser). Hendry discusses the end of an broadly adopted national strategy, mercantilism, and what he sees as the implications.

The Greek Resistance

This Aljazeera video seeks to understand how Germans and Greeks view each other in light of the way the Trokia is breaking Greece as an example to other periphery countries (yes, Greece would have had adjustment problems regardless, but they are being made far worse by the measures taken to avoid exposing the insolvency of French and German banks). It covers how the crisis has rekindled lingering hostilities. It also sheds new light on the pre-crisis economic relationship between Germany and Greece, including corrupt deals between the Greek government and German arms-makers. It also treats austerian thinking with more dignity than it deserves, but that is a secondary theme of this show.

Why Greece is a Model of Economic Mismanagement

By Delusional Economics, who is determined to cleanse the daily flow of vested interests propaganda to produce a balanced counterpoint. Cross posted from MacroBusiness.

Today I thought it was timely to have another look at the Greek economy from a sectoral balance perspective which will hopefully provide some clarity on exactly what we are seeing in Greece, but just as importantly also provide some broader context to the likely outcomes for other Eurozone periphery nations with similar economic dynamics.