Political Economy

Japan’s deflation problem is overdetermined – there are multiple causes at work, any one of which could account for the observed phenomenon. Those who have been following the debate can simply choose their favourite – balance sheet…

By Win Thin A little history lesson about Ukraine and Crimea may help put recent developments into better perspective. What emerges is a very clear understanding of why both Russia and Ukraine feel that they each have historical precedent…

Detroit was allowed to declare bankruptcy last year. While economists often focus on the barriers to entry, by removing the stigma from bankruptcy and easing the process, it makes lowers the barriers to exit. This stands in stark contrast…

By Daron Acemoglu, Simon Johnson, Amir Kermani, James Kwak, Todd Mitton This post was originally published at Vox. Political connections affect economic outcomes in emerging markets. This column discusses new evidence showing that…

The aim of the above header is to link two names in people’s minds, both of them Italian: Mario Draghi and Matteo Renzi. Naturally the idea is not original, the FT’s Peter Spiegel recently published an entire blog post (Does Renzi owe his…

The value of the pound in 1945 was too high even for Britain as it was then, let alone now. It is time to put the past behind us, and move on.

Italian stocks and bonds have rallied strongly on ideas that the Italian situation can only get better. It is exactly such time, when so many observers are nearly euphoric, that the smart money may want to take some profits.

Conditions in Venezuela are reaching boiling point. Venezuelans - particularly students - are taking it to the streets, as protests sparked by worsening living conditions have turned violent (see story). Inadequate supplies of food and…

The events of the last week have made it very clear that Scottish independence would affect all of the UK. I have no vote in this referendum, but I definitely have an interest in its outcome.

The UK government this week ruled out any question of agreeing to a currency union with an independent Scotland. So where does this leave Scotland's currency conundrum? And what about the banks? Scotland has two very large banks - RBS and…