Military leaders talk about the “fog of war” – the condition of fundamental uncertainty that marks combat. The recent credit and liquidity crisis has revealed a similar condition in financial markets, because no one, not even central banks, seems to understand its nature or magnitude.
Military leaders talk about the “fog of war” – the condition of fundamental uncertainty that marks combat. The recent credit and liquidity crisis has revealed a similar condition in financial markets, because no one, not even central banks, seems to understand its nature or magnitude.
It is often suggested that what is called the “subprime” crisis was the result of lax monetary policies that led to excess liquidity in financial markets. But there is an obvious paradox here, because how can an
excess
of liquidity result ultimately in a
shortage
of liquidity that has to be made up by central banks?
In fact, monetary laxity can be a symptom not of excess liquidity, but of excess saving. This is reflected in increasing income inequality in much of the developed world, and the vertiginous surpluses of oil-producing countries and Asian nations. The emergence of sovereign wealth funds like those of China and the Gulf states to invest the savings of these countries’ budget surpluses is but the tip of the global excess savings iceberg.
Hasan Gokal, the medical director of the Harris County, Texas COVID-19 response team, refused to let a vial of vaccine expire and sought out eligible recipients before the doses would have to be discarded. For his sound ethical reasoning, he was fired and faces criminal prosecution.
examines the case of Hasan Gokal, a Texas doctor who was fired and faces prosecution for not wasting doses.
Creating an economy that works for everyone is not just a matter of empowering those who have been “left behind” by globalization. Instead, it requires a comprehensive and critical assessment of the systemic forces that are fueling inequality.
highlights the limitations of policies aimed at helping those who were “left behind” by globalization.
Military leaders talk about the “fog of war” – the condition of fundamental uncertainty that marks combat. The recent credit and liquidity crisis has revealed a similar condition in financial markets, because no one, not even central banks, seems to understand its nature or magnitude.
It is often suggested that what is called the “subprime” crisis was the result of lax monetary policies that led to excess liquidity in financial markets. But there is an obvious paradox here, because how can an excess of liquidity result ultimately in a shortage of liquidity that has to be made up by central banks?
In fact, monetary laxity can be a symptom not of excess liquidity, but of excess saving. This is reflected in increasing income inequality in much of the developed world, and the vertiginous surpluses of oil-producing countries and Asian nations. The emergence of sovereign wealth funds like those of China and the Gulf states to invest the savings of these countries’ budget surpluses is but the tip of the global excess savings iceberg.
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