Has everyone forgotten the role played by the ratings agencies in the global financial crisis? Have any of those responsible for the wrongdoing of those agencies been punished for their destructive activities? Absolutely not! They have been protected from prosecution for their crimes. The ratings … [Read more...]
Governments ‘too focused on budget cuts’ says Bernanke
An interview on 26 October by BBC economics editor Robert Peston with former Fed chairman Ben Bernanke [1] has revealed that the latter thinks there should have been a stronger fiscal response to the global financial crisis in most countries, rather than their obsession with budget cuts, which left … [Read more...]
Federal government spending is different from household spending
It is not unusual to hear from politicians that government spending and household spending operate according to the same overall principles. This narrative usually states that households and governments must both "live within their means". And although many astute commentators recognise that … [Read more...]
Austerity is wrecking the global economy
In a recent article in the New York Times [1,2], economist Paul Krugman made the point that "the widespread demand for austerity serves a political agenda, with panic over the alleged risks of deficits providing an excuse for cuts in social spending". However considering the current state of the … [Read more...]
