debating progressive politics in Europe and beyond
Nothing illustrates better the political crosscurrents, special interests, and shortsighted economics now at play in Europe than the debate over the restructuring of Greece’s sovereign debt. Germany insists on a deep restructuring – at least a 50% “haircut” for bondholders – whereas the European Central Bank insists that any debt restructuring must be voluntary. In [...]
Last week a British hedge fund bought 250,000 tonnes of cocoa beans, pushing prices up to a record 33-year high. Hedge funds and banks are constantly speculating on food and other commodity prices, but what was unusual in this case is that the hedge fund actually took delivery of the beans. These actions are an [...]
Ten areas of financial reform are regarded as being essential to re-establish the two basic functions of the banking sector, namely, extending credit to households and the business sector, and connecting investors to entrepreneurs. Pure trading and speculating should, meanwhile, be discouraged to the maximum degree possible. The project of seriously re-regulating the financial sector [...]
Strengthening labour relations and workplace innovations are prerequisites for sustained recovery and future growth. Enabling workers and unions to negotiate wage growth in line with enhanced productivity growth requires the dissemination of high-performance working practices that engage workers, a raising of minimum standards, and substantial changes to labour law. The global economic crisis had its [...]
In early 2009, Paul Krugman gave a series of lectures at the London School of Economics on the global economic crisis in which he warned about the danger of a ‘perfect storm’ hitting the economy. The scenario he sketched was that of a fragile recovery in 2010-11 being hit by an inflationary spike, leading to [...]
Europe’s governments have done it: the Euro Area is in shambles. Not because the euro was a bad idea, but because partial interests by member state governments prevent the design and implementation of good policies. Nation states damage the collective interests of European citizens. The present system of intergovernmental governance without a European government is [...]
All Content