Saturday, May 30, 2015
  1. The Inflation Puzzle

    Martin Feldstein

    The Inflation Puzzle

    5

     explains why US price growth has remained subdued, despite a dramatic rise in the monetary base.

    puzzle pieces jugbo/Flickr

    The low rate of inflation in the US is a puzzle, especially to economists who focus on the relationship between inflation and changes in the monetary base. To solve it requires understanding the change in the role of the reserves that commercial banks hold at the Federal Reserve. READ MORE

  2. Varoufakis’s Great Game

    Hans-Werner Sinn
  3. Niall Ferguson’s Wishful Thinking

    Robert Skidelsky

    Niall Ferguson’s Wishful Thinking

    5

     continues the debate with the Harvard historian over the UK government's austerity policy.

    Niall Ferguson Javier Rojas/ZumaPress

    The Harvard historian Niall Ferguson is right that Keynesians should learn from experience. But until Ferguson explains why he thinks that austerity was a good thing for the UK economy, his critics will be forgiven for seeing his economic pronouncements as nothing more than political propaganda. READ MORE

  4. Austerity Is the Only Deal-Breaker

    Yanis Varoufakis

    Austerity Is the Only Deal-Breaker

    35

     says that his government is prepared to enact all of the reforms that its creditors expect.

    Greece parliament building Wassilios Aswestopoulos/ZumaPress

    Greece’s government is eager to implement an agenda that includes all of the economic reforms that its creditors expect, and is uniquely able to maintain the public’s support for a sound economic program. What it will not do is embrace a cure – deeper austerity – that kills the patient. READ MORE

  5. A World of Underinvestment

    Michael Spence

    A World of Underinvestment

    23

     calls for international cooperation to boost investment in struggling post-crisis economies.

    underinvestment Luca Bruno/Flickr

    After World War II, policymakers recognized that deleveraging depended on nominal economic growth, which in turn depended on a global recovery. Like them, today’s policymakers should use – and even stretch – their balance sheets for investment, while opening themselves up to international trade. READ MORE

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