Results 101–110 of 110 found.
Jeremy Lin and the Political Economy of Superstars
High salaries for athletes and movie stars are easily accepted by the public. So why, if a financial trader or a corporate boss is paid a fortune, does the public suspect that he or she must be undeserving or, worse, a thief.
Just as the financial industry caused a near-meltdown of the global economy in 2008, the food industry has facilitated the explosion of obesity around the world. In both cases, the links to broader problems with contemporary Western capitalism have become impossible to ignore.
Rethinking the Growth Imperative
Modern macroeconomics often seems to treat rapid and stable economic growth as the be-all and end-all of policy. But, while that is the message from graduate classrooms to central-bank boardrooms to newspapers front pages, is it true?
Is Modern Capitalism Sustainable?
In principle, none of capitalisms problems is insurmountable, and economists have offered a variety of market-based solutions. Will capitalism be a victim of its own success in producing massive wealth? For now, as fashionable as the topic of capitalisms demise might be, the possibility seems remote. Nevertheless, as pollution, financial instability, health problems, and inequality continue to grow, and as political systems remain paralyzed, capitalisms future might not seem so secure in a few decades as it seems now.
A Gravity Test for the Euro
Although I appreciate that exchange rates are never easy to explain, I find todays relatively robust value for the euro mysterious. Do the gnomes of currency markets seriously believe that the eurozone governments latest comprehensive package to save the euro will hold up? The new plan relies on a questionable mix of dubious financial-engineering gimmicks and vague promises of modest Asian funding. I can think of one very good reason why the euro needs to fall, and six not-so-convincing reasons why it should remain stable or appreciate. Lets begin with why the euro needs to fall.
The Wrong Tax for Europe
Europe is already in pickle, so why not add more vinegar? That seems to be the thinking behind the European Commissions proposed financial transactions tax (FTT)-the Commissions latest response to Europes festering growth and financing problems. Ordinary Europeans have to pay value-added tax on most of the goods and services that they buy. so why not tax purchases of stocks, bonds, and all kinds of derivatives? Surely, such a tax will hit wealthy individuals and financial firms far more than anyone else, and, besides, it will raise a ton of revenue.
Will the IMF Stand Up to Europe?
Until now, the IMF has sycophantically supported each new European initiative to rescue the over-indebted eurozone periphery, committing more than $100 billion to Greece, Portugal, and Ireland so far. Unfortunately, the Fund is risking not only its members money, but, ultimately, its own credibility. Now that the Fund has squarely acknowledged the huge capital holes in many European banks, it should start pressing for a comprehensive solution to the eurozone debt crisis, a solution that will involve either partial breakup of the eurozone or fundamental constitutional reform.
The Second Great Contraction
Why is everyone still referring to the recent financial crisis as the Great Recession? The term, after all, is predicated on a dangerous misdiagnosis of the problems that confront the United States and other countries, leading to bad forecasts and bad policy. The phrase Great Recession creates the impression that the economy is following the contours of a typical recession, only more severe. That is why, throughout this downturn, forecasters and analysts who have tried to make analogies to past post-war US recessions have gotten it so wrong.
Do Countries 'Graduate' From Crises? Some Historical Perspective
Are declarations of victory against the global crisis premature? This column argues that 'graduation' - the emergence from recurrent crisis bouts - is a long and painful process which neither developed nor developing countries look close to completing. Two centuries of evidence suggests that most countries need 50 years before the chances of further crises subside.
Debt and Growth Revisited
With the advanced economies at a critical juncture, some economists are urging more fiscal stimulus while others argue that raising debt levels will stunt growth. This column presents the Reinhart-Rogoff findings on the relationship between debt and growth based on data from 44 countries over 200 years with a focus on the debt-growth link during high-debt episodes.
Results 101–110 of 110 found.