debating progressive politics in Europe and beyond
Government bond markets in Europe remain volatile, with Spanish and Italian bond rates at near unsustainable levels. Paul De Grauwe argues that the only institution that can stabilize these markets by buying government bonds is the European Central Bank (ECB). The ECB must now overcome its risk averse nature and take advantage of its virtually infinite resources [...]
In its attempts to rescue the euro, Germany is often seen as the odd country out. It blocks constructive solutions with its resistance to either using ECB funds or creating sufficiently large rescue mechanisms for indebted countries and banks, all while insisting on pronounced austerity. However, what is seldom understood abroad is that the German [...]
When Eurostat or the OECD release the latest figures on youth unemployment, we know what to expect: alarming newspaper headlines and commentaries full of rates and detailed figures, which provide a good picture of the macro changes but very little explanation of the realities of youth employment in Europe. While I share Steven Hill’s uneasiness [...]
Stephen Hill and I, along with some others, have been debating, in part, whether it is ok to lump all economists together, and put a “dumb” sticker on the whole lot. Have a look at this post – text is below – by Mark Thoma (US economist and prolific blogger). It seems very clear to [...]
Almost exactly one year ago I wrote a blog post entitled ECB success shows extent of failure. The ECB had just announced its intention to buy Spanish and Italian bonds. Interest rates on the bonds had fallen significantly. The markets were happy. As I pointed out, this was more an indication of policy failure than [...]
Sanford Weill, the former Chairman and CEO of Citigroup, suggested on CNBC that banks should be broken up to separate retail from investment banking – a reform also widely proposed in Europe. This is a very significant move, as Robert Reich argued, given that Weill is widely credited as having developed the current Wall Street [...]
I’m in Alaska, amid moose and bear, trying to steal some time away from the absurdities of American politics and economics. But even at this remote distance I caught wind of Sanford Weill’s proposal this morning on CNBC that big banks be broken up in order to shield taxpayers from the consequences of their losses. [...]
Stephen Hill has a post on this website criticising the use of the youth unemployment rate as a measure of the extent that joblessness amongst young people is an economic and social problem. Unfortunately he goes way over the top in a number of regards, notably the claim that: “Economists don’t know how to measure [...]
Bloomberg quotes German Vice Chancellor Philipp Roesler as saying “What’s emerging is that Greece will probably not be able to fulfil its conditions. What is clear: if Greece doesn’t fulfil those conditions, then there can be no more payments.” (HT PK) OK, this is just the kind of thing you would expect to be said [...]
Economists don’t know how to measure youth joblessness. One thing we have learned from the economic crisis is that we need better ways of measuring economies, at both national and global levels. The economics profession missed an $8 trillion housing bubble in the United States, as well as housing bubbles in Spain, Ireland and the [...]
The rightwing Spanish government plans a new 65 billion euro austerity package, while the no less rightwing Greek coalition hopes to reduce public sending by 11.7 billion. By accident or mis-design both hope to reduce net public sector spending over two years (2012-2013) by five percent of this year’s GDP. After several years of economic [...]
I have just arrived in Chicago to talk about the Eurozone crisis at a conference organised by the Goethe Institute and the Federal Reserve Bank of Chicago. It is very easy to become self-centred given the enormous problems we have in Europe. But a protest right in front of my hotel served as a timely [...]
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