Friday, September 30, 2016
Thursday, September 29, 2016
Austerity is defined as a fiscal contraction that causes a significant increase in aggregate unemployment. For the
global economy, or an economy with a flexible exchange rate, or a monetary union as a whole, an increase in
unemployment following a fiscal consolidation can and should be avoided because monetary policy can normally
offset the demand impact of the consolidation. The tragedy of global austerity after 2010 was that fiscal
consolidation was not delayed until monetary policy was able to do this.
Sunday, September 25, 2016
Friday, September 23, 2016
Short of Lying. The prevalence of bullshit in political communication
... all the key contributors to the debate agree that political
communication is one of the main contexts in which the phenomenon occurs.
Frankfurt (2005: 22) singles out politics as one of his prime suspects from where to
expect continuous emanation of bullshit...
Wednesday, September 21, 2016
EconPapers: The Pitfalls of External Dependence: Greece, 1829-2015
Abstract: Two centuries of Greek debt crises highlight the pitfalls of relying on external financing. Since its independence in 1829, the Greek government has defaulted four times on its external creditors - with striking historical parallels. Each crisis is preceded by a period of heavy borrowing from foreign private creditors. As repayment difficulties arise, foreign governments step in, help to repay the private creditors, and demand budget cuts and adjustment programs as a condition for the official bailout loans. Political interference from abroad mounts and a prolonged episode of debt overhang and financial autarky follows. We conclude that these cycles of external debt and dependence are a perennial theme of Greek history, as well as in other countries that have been "addicted" to foreign savings.