The announcement by Phillip Hammond that there will be no Budget spending sprees is to be welcomed. When interest rates … Continue reading “Low interest rates are not an argument for more government borrowing”

The relative merits of directing monetary policy by following set rules or by the use of discretion has engaged economists … Continue reading “Monetary policy: reforming the rules”

The public at large takes a very dim view of banking. When the pre-fix ‘shadow’ is added, matters only get … Continue reading “Casting a shadow on banking”

Keynesian demand management endures with the regular adjustment of short-term interest rates and the lowering of long-term interest rates, once … Continue reading “Setting up the next Keynesian bubble and bust?”

In March 2009 an EU directive increased the value of the protection afforded by a deposit guarantee scheme (DGS) to … Continue reading “Bank deposits cannot be guaranteed across the eurozone”

Keynesian economists have an enduring disposition to spend their way out of trouble. This is so even when overspending has … Continue reading “Negative interest rates? Negative!”

Little more than three years ago, Ireland’s taxpayers were saddled with around 40 billion euros of debt, after their government … Continue reading “Ireland’s sovereign debt monetisation”

A review of Keynes Hayek: The Clash That Defined Modern Economics by Nicholas Wapshott. As the Luftwaffe targeted culturally-rich cities … Continue reading “Keynes Hayek: The Clash That Defined Modern Economics”

One estimate (from the Olympic Delivery Authority) for the overall ‘Public Sector Funding Package’ for the London 2012 Olympic Games, placed it … Continue reading “London 2012: gold, but not growth”

President Obama’s 2009 stimulus has been a disappointment: the Keynesian response is that it failed because it was not big … Continue reading “Ben Bernanke’s road to inflation”

If ever you see a €100 banknote in the gutter, don’t bother to stop. If it were real, someone would … Continue reading “No ruse to save the euro”

Martin Wolf recently committed the Financial Times to a $71.88 lunch-time interview with Paul Krugman. Whatever the quality of the … Continue reading “The answer is ‘inflation’. What was the question?”

Mainstream macroeconomics presents monetary and fiscal interventions as independent policy options, and this spills over to institutional structures. In the … Continue reading “Economic fundamentals and the eurozone”

The European Central Bank (ECB) sits at the centre of a clearing system (‘TARGET2’) for national central banks (NCBs) within … Continue reading “The ECB cannot hold back the tide of euro credit and banknotes”

Lord Robert Skidelsky is unlikely to have understood the anecdote in his opening remarks in the LSE Hayek/Keynes debate. He … Continue reading “Hayek’s overcoat”

Keynes gave little thought to generalities. He acknowledged that his prescriptions were limited to the special circumstances of the 1930s. … Continue reading “Keynesian paradoxes”

The condemnation of benefit fraud and tax avoidance obscures a difference. Benefit cheats make fraudulent claims upon the earnings of … Continue reading “Democracy and taxation”

State infrastructure projects may be funded by private capital through PFI (private finance initiative) contracts.This week, BBC Radio’s File on … Continue reading “No situation is so bad that government intervention cannot make it worse”

The decision to abandon nuclear power will increase Germany’s short-term dependency upon fossil fuel as it engages with long-term aspirations … Continue reading “A Promethean tragedy: the ultimate green economy”

The eurozone came with fine aspirations: according to article 127 in the consolidated version of the Treaty on the Functioning … Continue reading “Sovereign debt restructuring and the euro crisis”

Ireland is not stupid. When credit is offered, it chooses the lowest rate. Ireland’s ‘bailout’ from the European System of … Continue reading “Is Ireland exploiting eurosystem loopholes at Germany’s expense?”

Inflation is the process whereby ‘things’ – balloons, tyres, opinions, etc. – wbecome enlarged. Deflation is the reverse process. In … Continue reading “Oil prices and inflation”

While the full complexity of an economic cycle can never be gauged, economists point to many contributory factors, each with … Continue reading “Taylor Rules – far from ‘OK’!”

A member of the Bank of England’s Monetary Policy Committee believes that inflation has been driven ‘by higher food and … Continue reading “How can so many economists be wrong-headed on inflation?”

Mervyn King has been criticised for crossing a line which separates monetary policy (the Bank’s remit) and fiscal policy (the Treasury’s … Continue reading “The tragedy of the eurozone”

In the 1920s, the UK economy was deflated as a prelude to the restoration of the gold standard. The Chancellor … Continue reading “The economic consequences of fiscal consolidation”

As one set of economists warns that rapid debt reduction is likely to plunge the economy into deep recession, another … Continue reading “A Post-Keynesian sleight of hand”

A comment from a Woman’s Own interview in 1987 is often repeated, but rarely in context:  ”There is no such … Continue reading “There is no such thing as society”

A comment from a Woman’s Own interview in 1987 is often repeated, but rarely in context:  ”There is no such … Continue reading “There is no such thing as society”