An age of extremism

It may have been caused by what happened in 2008, or the causes may run deeper than that. We are witnessing it at work in the US, and the result is that there is a chance the global economy may be brought down to its knees. We are seeing it...Read More

UK immigration and a nasty dose of xenophobia

Facts don’t seem to be all that important. If you want to express an opinion on immigration, it appears what matters is who can shout the loudest, and who is best at riding the latest populist wave. Many people say that immigration is the most important issue concerning the UK...Read More

Posted Aug 05, 2013

Should the UK follow IMF’s advice?

Here are two technical terms, before we get underway: fiscal multiplier and blinkered. A fiscal multiplier simply describes the relationship between government spending and GDP. Blinkered, which was a theory developed by Professor Obvious from the school of common sense, may apply George Osborne.

Here is some simple maths....Read More

Posted May 23, 2013

Is less education the answer?

Nobel Laureate Joseph Stiglitz reckons that US student loans are the next big western economic crisis in the making – the next sub-prime. In the UK, the numbers are not quite so scary, but we do seem to be adopting many of the worst elements of the US economy.
Read More

Posted May 23, 2013

Immigrants are good for the economy says …

We read it so often, it must be true. Immigrants are destroying the UK economy, and, worse than that, they are robbing us of our benefits.
It is just that in Germany attitudes are a touch different.

Take Ursula von der Leyen, who is Germany’s labour minister. She told...Read More

Posted May 09, 2013

Hard-up US consumers show free markets fundamentals are wrong

It is one of those Victor Meldrew theories. In other words, it is easy to say: “I don’t believe it.”

Economic theory, at least some of it, says government spending does not lead to more growth in an economy. The theory says that households spot that the government is...Read More

Posted May 09, 2013

A global corporate tax rate is what we need, but at least we are getting a touch more global cooperation

The tax system is a touch odd, but there is not much we can do about until…
George Osborne has become a fan of cutting UK corporation tax. In the last budget it was reduced to 20 per cent, making the UK one of the more attractive countries in the...Read More

Posted May 09, 2013

Darling boy and girl of Austerian economics calls for stimulus, but not just any old stimulus

Ken Rogoff and Carman Reinhart – the two academics who wrote that rather controversial paper suggesting that when public debt to GDP rises over 90 per cent, growth falls sharply – have come out fighting. And you know what, their observations not only make a lot of sense, they are...Read More

Posted May 02, 2013

Baltics: growing because of or despite austerity

Last June BBC 2’s ‘Newsnight’ had a kind of Paul Krugman special. The Nobel Laureate and arch supporter of Keynesianism was on the show for almost its entire duration. And a big hullaballoo it created too.

But one particular piece of controversy, relating to the Baltics and how their...Read More

Posted May 02, 2013

Italy chooses date with the past

All change please! In Italy, the old guard of Italian politics has been firmly ostracised, to the backwaters of… well actually they are back in control.

The man nominated to take on the role of Italy’s new prime minister is a young man. Enrico Letta is just 46. However,...Read More

Posted Apr 25, 2013

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