Category Archives: Economics

The catch-all category for my blogs reflecting my professional expertise as a full professor of economics.

Europe’s US imported nightmare

I note the US have been rather quietly urging the EU to resolve the so-called ‘Greek crisis’, which I really think is a euro-crisis, even though its current epicentre is in Greece. What the Americans are doing beyond the purview … Read the rest of this entry »

Posted in Economics, Eurozone, US economy | 15 Comments

So-called ‘free trade’ agreements should be strongly opposed

My header this week is in solidarity for the Greek people. I hope they vote no and then realise that leaving the dysfunctional Eurozone will promise them growth and a return to some prosperity. They can become the banner nation … Read the rest of this entry »

Posted in Economics | 24 Comments

Parents are advance secret agents for the class society

Dutch economist Jan Pen wrote in his 1971 book – Income Distribution – that “Parents are advanced secret agents of the class society”, which told us emphatically that it was crucial that public policy target disadvantaged children in low-income neighbourhoods … Read the rest of this entry »

Posted in Economics, US economy | 23 Comments

Too much private credit undermines growth and increases inequality

The OECD has just published a new Economic Policy Paper (June 2015) – Finance and Inclusive Growth – which challenges the notion that the financial market deregulation in the period prior to the GFC, which led to a rapid increase … Read the rest of this entry »

Posted in Economics | 22 Comments

A central bank can always prevent government default

I have received a lot of E-mails over the weekend about a paper released by the CEPR Policy Portal VOX (June 20, 2015) – Can central banks avoid sovereign debt crises? – which purports to provide “new evidence” to support … Read the rest of this entry »

Posted in Central banking, Economics | 28 Comments

Why investment expenditure is insensitive to monetary policy

The June quarter 2015 edition of the Reserve Bank of Australia Bulletin has an interesting article – Firms’ Investment Decisions and Interest Rates – which further erodes the mainstream economics claim that business investment is negatively related to interest rates … Read the rest of this entry »

Posted in Economics | 21 Comments

Seeking zero fiscal deficits is not a progressive endeavour

There was a most extraordinary Opinion piece in the British paper The Independent last weekend (June 13, 2015) – Labour should have managed the economy better when in power. It was written by the aspiring Labour spokesperson on business, innovation … Read the rest of this entry »

Posted in Economics, UK Economy | 15 Comments

Time to expand public service employment

Back in 2010, in the early days of the GFC, the then Australian Labor government was weathering a conservative storm for daring to introduce a large-scale (and rapid) fiscal stimulus. The package had several components but the most controversial were … Read the rest of this entry »

Posted in Economics | 18 Comments

Fiscal stimulus does not necessarily mean large government

There was an interesting if not ego-centric interchange last week involving the New Keynesian economist Paul Krugman and others about whether the sort of macroeconomic policy positions one takes is more motivated by ideological motives (about the desirable size of … Read the rest of this entry »

Posted in Economics | 34 Comments

Friday lay day – Minimum wage in Australia creeps up

Its my Friday lay day blog but no rest for the wicked today. The Fair Work Commission, the Federal body entrusted with the task of determining Australia’s minimum wage handed down its – 2014-15 decision – on June 2, 2014. … Read the rest of this entry »

Posted in Economics, Friday, Labour costs | 6 Comments