By Marshall Auerback, a portfolio strategist and Roosevelt Institute fellow A few years ago, Chris Dialynas and I wrote a piece which introduced the concept of “renegade economics”. It was derived from a Frank D. Graham’s 1943 essay titled, “Fundamentals of International Monetary Policy.” Graham, a Princeton University economist, wrote: “In international affairs we must […]
Read more...Martin Wolf, in today’s Financial Times, argues that the eurozone has done wonders for Germany by allowing it to keep the value of its currency down. With Germany’s persistent, large trade surpluses, the value of the deutschemark would eventually have risen, dampening Germany’s trade surpluses and forcing it either to accept a higher level of […]
Read more...The end of the US summer holiday period is upon us, and with it, a return to reality. The markets are again concerned re Eurobanks, as the fears registered in EU periphery country bond spreads are now registering with investors in other markets. Per Bloomberg: The gaps between 10- year German bond yields and those […]
Read more...During the global financial crisis, after each acute phase, there would be a period of relief in which conditions returned to a semblance of normalcy, and policymakers and investors carried on as if acting as if all was well would make it so. Unfortunately, positive thinking provided only temporary relief from the undertow of rising […]
Read more...Lordie, if this isn’t disingenuous, I don’t know what is. From the Financial Times: US universities are producing too few engineers to meet industry demand, Indian outsourcing companies say, leaving such businesses little choice but to hire foreign skilled workers to fill jobs in America And why are there so few students studying computer science? […]
Read more...Wolfgang Munchau has an intriguing piece at the Financial Times debunking the idea the Germany’s recent peppy growth numbers are as salutary as Mr. Market seems to believe. Part of his message isn’t necessarily all that surprising, and comes towards the end of the article: ….it is important to keep some perspective and not draw […]
Read more...Beijing-based fiance professor and commentator Michael Pettis gives a typically sobering outlook in a Financial Times comment today, seeing the seemingly irresistible force of trade surplus countries’ resistance to shifting towards more internal generated demand colliding with the immovable object of trade deficit countries’ inability to tolerate the high unemployment rates that result for a […]
Read more...John Plender in his comment at the Financial Times, “Great dangers attend the rise and fall of great powers,” does a fine job given the space constraints of discussing the fraught process of changes in global economic and political leadership. I thought it would be useful to quote Plender at length, with some additional observations, […]
Read more...When I was on C-SPAN the weekend before last, I got a call I didn’t quite know how to field. It was from someone who by his accent was obviously Indian. He claimed that Indians represented 35% of the managers in American companies, and that American visa restrictions meant that they were all going to […]
Read more...Even though 2010 is proving to be a much happier year than 2009 for carriers and ports, weak consumer sentiment and rising odds of further deterioration in the economy has the operators of the big West Coast ports, Los Angeles and Long Beach, worried that a solid July will not prove to be a precursor […]
Read more...An article at Caixin helps clear up a mystery that has plagued Western observers, including some readers of this blog: where is all the money that is stoking Chinese real estate speculation coming from? Accounts of individuals buying 3 or 5 apartments at prices way out of line with incomes with little in the way […]
Read more...In the 1980s, when unemployment hit 8%, Ronald Reagan’s administration was concerned and took steps to address the problem. One of the causes had been the 60% increase in the dollar versus the yen, which allowed the Japanese to make deep inroads into the US. One of the responses was the so-called Plaza Accord, in […]
Read more...Dean Baker has regularly made fun of the idea that the Chinese are concerned that they will show losses on their large dollar positions, mainly in invested mainly in US Treasuries. As serious traders will tell you, it’s actually easy to manipulate a market, but hard to make money doing it. As Baker put it: […]
Read more...This post first appeared on May 8, 2007 The debate among Serious Economists about the benefits of free trade continues, and Dani Rodrik continues to take a dispassionate look at the data and the models. This post, although a bit geeky, is intriguing because Rodrik dissects an analysis cited by Bernanke in a recent speech, […]
Read more...Back in January, the preposterous projected 99-year return on this Green Oil caught my eye; it reminded me of an ostrich scam a few years back, under which, if you took it literally, the entire surface of the world would have been carpeted with ostriches rather quickly; to the great enrichment of all, naturally. Then […]
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