Economy

The public has been seeing their (per-capita) "slice of the pie" contract now for six months, and no amount of well spun "sluggish growth" can alter their view of a shrinking reality.

I think these two quotes sound pretty similar. They both blame Europe for the world’s economic problems. The inference is that all would be well if it weren’t for those Europeans.

I see this private mending market as a bit like pay day loans in the US. The goal, however, is to get around lending restrictions imposed by the state. The lesson is clear: once bubble psychology takes over, it is difficult to dislodge it.…

Warren Mosler argues that it is the realization that the ECB is the issuer of the currency, and is therefore not revenue constrained, that leads to the conclusion that not allowing Greece to default best serves public purpose.

The world is experiencing the adverse consequences of negative real interest rates and yet the monetary policy prescription of choice is for more negative real interest rates.

Today's durable goods orders data lends credence to our projection of fairly robust Q3 US GDP after the dismal 0.8% expansion in H1. The durable goods report is the third important piece of data that should encourage economists to look for…

Former ECB chief economist Otmar Issing recently spoke to German weekly Stern in an interview now published online. His view is that the appropriate strategy for dealing with Greece is to force a hard restructuring and a large writedown of…

We’ve reached a very rare moment in economic history where the problem is greater than the ability of the politicians to respond.

The consequences of negative real interest rates and financial repression. We know how this story ends. Keep this one on your radar.

Germany’s ability and willingness to pay will decrease as the economy falters. Remember, Germany is more indebted than Spain and has also long been in violation the Maastricht Treaty’s stability and growth pact provision on government debt…