News that Detroit has filed for bankruptcy are interesting not least from the perspective of the ongoing travails of the euro area. How’s that? The euro area is often seen as failing because, at bottom, it is not an optimal currency area. Countries joining a monetary union lose policy flexibility, in particular the ability to […]
There was a very interesting debate on Channel 4 News in the UK about the repercussions of austerity in Europe and the UK. Paul Krugman, Guy Verhofstadt and Matthew Hancock took part. The result: austerity does not work and the UK government is more and more desperate in its attempt to justify its failing policies.
Paul Krugman has recently given an extended interview on his view on depression economics on the Bill Moyers show in the US. The channel described the programme as follows: Nobel Prize-winning economist and New York Times columnist Paul Krugman argues that saving money is not the path to economic recovery. Instead, he tells Bill, we […]
The discussion about the fiscal cliff in the US and its potential implications for the US domestically and the wider global economy is still going on. And again Paul Krugman took the stage to explain why trying to cut the deficit too fast now, launching what he calls an austerity bomb, is completely counterproductive. Some […]
Paul Krugman and Joseph Stiglitz discussed their respective books on the current economic problems and inequality at an event organised by the Institute for New Economic Thinking (INET). For the everybody who was unable to attend the event they fortunately uploaded a YouTube video of the full event.
In August 2008, when the global recession was casting its malevolent influence on the international economy, Olivier Blanchard, an eminent macroeconomist, issued the following proclamation: ‘the state of macro is good’. He wanted to demonstrate a remarkable degree of ‘convergence in vision’ among the professional community of ‘modern’ macroeconomists in which the acrimonious battles between […]
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 […]
Richard Layard discusses his ‘Manifesto for Economic Sense’, co-authored with Paul Krugman, which argues that fiscal deficits are due to stagnation, and that further austerity to reduce deficits will only slow down the recovery. Thousands of economists disagree with the austerity policies being followed in so many countries. Yet few speak out and I am one of the […]