Tags » Macroeconomics

Good for Germany, good for Europe

After years of frugality, German consumers are finally spending again, at a rate not seen since the dotcom boom of the 1990s. According to the FT, private consumption is growing at about 2% per annum, driven by high levels of employment, rising wages, and low inflation and interest rates. 462 more words

Political Economy

Is the “flight to quality” effect breaking down?

Macro letter – No 61 – 16-09-2016

Is the “flight to quality” effect breaking down?

  • 54% of government bonds offered negative yields at the end of August…
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Economics as inevitably political

“The many supporters of neoclassical economics present it as “value free” in the sense that it encapsulates eternal truths of economic behaviour and natural law that are as independent of human perception and will as the law of gravity.

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Political Economy

Bubbles, stagnation and 'real' Keynesian economics

Here is an interview with left-Keynesian economist Thomas Palley, who has written a number of books centred around the explanation of and solutions to rising inequality, the Great Recession, economic stagnation and the dominance of finance in the economy and its damaging political influence. 69 more words

Political Economy

The unstable economy and the delusion of 'the Great Moderation'

“Economists are taught that the economy is intrinsically stable – price changes are small and random, so perturbations are rapidly damped out by the ‘invisible hand’ of market forces.

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Political Economy

Capitalist profit and different responses to recession

The rate of profit, a concept more or less central to all schools of economics, from mainstream neoclassical to Marxist, still gives rise to vigorous academic debates. 933 more words

Political Economy