Thomas I. Palley
Thomas I. Palley is a fellow of the New America Foundation.
-
2009-10-30
| In a normal world, the dollar’s weakening would be welcome, as it would help the US come to grips with its unsustainable trade deficit. But, in a world where China links its currency to the dollar at an under-valued parity, the dollar’s depreciation risks major global economic damage that would further complicate recovery from the current worldwide recession.... read |
-
2009-08-26
 |
Barack Obama’s nomination of Ben Bernanke to a second term as Chairman of the Federal Reserve represents a sensible and pragmatic decision, but it is nothing to celebrate. Instead, it should be an occasion for reflection on the role of ideological groupthink among economists, including Bernanke, in contributing to the global economic and financial crisis.... read |
-
2008-11-21
| The financial crisis that began in 2007 has been persistently marked by muddled thinking and haphazard policymaking. Now, the US Treasury is headed for a mistake of historic proportions by refusing to bail out the Big Three automakers.... read |
-
2008-10-09
| Central banks around the world have finally reacted to the global financial crisis by engineering a coordinated half-point interest-rate cut. That is welcome, but more rate cuts are needed without delay, while they may still have the desired effect.... read |
-
2008-08-15
| Until a few weeks ago, while oil prices were surging, debate raged about the relative roles of economic fundamentals and speculation in boosting oil prices. Although oil prices have now fallen back from their peak, that debate must not be forgotten, for the evidence points to speculation, with profound policy implications that we cannot afford to ignore.... read |
-
2008-06-16
| Reflecting their faith in markets, most economists dismiss the idea that speculation is responsible for the spike in oil prices over the past 18 months. But, while proving that speculation is responsible for rising prices is difficult, there are strong reasons to believe that it has played a significant role - underscoring the need for policy action to clean up the oil market.... read |
-
2008-02-08
| As US policy-makers desperately seek to stave off recession by slashing interest rates and enacting stimulus packages, a fundamental contradiction continues to be overlooked: since 1980, the US economy has relied upon asset price inflation and rising indebtedness, not wage income, to fuel consumer demand, investment, and output growth.... read |
-
2008-01-31
| Just as philosophers are divided on the nature of truth and understanding, economics is divided on the workings of the real world. Yet, in practice, the dominance of the belief in “one economics,” particularly in North America and Europe, has led increasingly to a narrow and exclusionary view of the discipline.... read |
-
2007-10-30
| Economists' arguments that today's global trade imbalances reflect either a savings shortage or a savings glut are absurdly misguided. The real problem is inadequate demand in developing countries that have benefited from globalization of production.... read |
|
How Japan Fuels Global Financial Instability
|
Thomas I. Palley 
|
|
Over the past several years, much attention has focused on the role of China’s trade surplus in creating today’s global financial imbalances. But too little attention has been paid to the role of Japan’s policy of near-zero interest rates in contributing to these imbalances.... read
|
-
2008-01-31
| Just as philosophers are divided on the nature of truth and understanding, economics is divided on the workings of the real world. Yet, in practice, the dominance of the belief in “one economics,” particularly in North America and Europe, has led increasingly to a narrow and exclusionary view of the discipline.... read |
-
2008-02-08
| As US policy-makers desperately seek to stave off recession by slashing interest rates and enacting stimulus packages, a fundamental contradiction continues to be overlooked: since 1980, the US economy has relied upon asset price inflation and rising indebtedness, not wage income, to fuel consumer demand, investment, and output growth.... read |
-
2008-06-16
| Reflecting their faith in markets, most economists dismiss the idea that speculation is responsible for the spike in oil prices over the past 18 months. But, while proving that speculation is responsible for rising prices is difficult, there are strong reasons to believe that it has played a significant role - underscoring the need for policy action to clean up the oil market.... read |
-
2007-10-30
| Economists' arguments that today's global trade imbalances reflect either a savings shortage or a savings glut are absurdly misguided. The real problem is inadequate demand in developing countries that have benefited from globalization of production.... read |
-
2007-05-17
| Over the past several years, much attention has focused on the role of China’s trade surplus in creating today’s global financial imbalances. But too little attention has been paid to the role of Japan’s policy of near-zero interest rates in contributing to these imbalances.... read |
-
2008-08-15
| Until a few weeks ago, while oil prices were surging, debate raged about the relative roles of economic fundamentals and speculation in boosting oil prices. Although oil prices have now fallen back from their peak, that debate must not be forgotten, for the evidence points to speculation, with profound policy implications that we cannot afford to ignore.... read |
-
2008-11-21
| The financial crisis that began in 2007 has been persistently marked by muddled thinking and haphazard policymaking. Now, the US Treasury is headed for a mistake of historic proportions by refusing to bail out the Big Three automakers.... read |
-
2008-10-09
| Central banks around the world have finally reacted to the global financial crisis by engineering a coordinated half-point interest-rate cut. That is welcome, but more rate cuts are needed without delay, while they may still have the desired effect.... read |
-
2009-10-30
 |
In a normal world, the dollar’s weakening would be welcome, as it would help the US come to grips with its unsustainable trade deficit. But, in a world where China links its currency to the dollar at an under-valued parity, the dollar’s depreciation risks major global economic damage that would further complicate recovery from the current worldwide recession.... read |
|
One Hand Clapping for Ben Bernanke
|
Thomas I. Palley
|
|
Barack Obama’s nomination of Ben Bernanke to a second term as Chairman of the Federal Reserve represents a sensible and pragmatic decision, but it is nothing to celebrate. Instead, it should be an occasion for reflection on the role of ideological groupthink among economists, including Bernanke, in contributing to the global economic and financial crisis.... read
|
