Economics

You tell me.

At the weekend, I saw three articles asking essentially the same question about sovereign debt crisis contagion: why Italy and why not Japan (the US or Germany)? Here's my answer.

There is, and historically has been, some confusion surrounding sovereign currency. So, many policy makers and economists have had trouble understanding why the private sector would accept currency issued by government as it makes…

The research presented below from the IMF from October 2010 "finds that fiscal consolidation typically reduces output and raises unemployment in the short term. At the same time, interest rate cuts, a fall in the value of the currency, and…

The Fed could do a number of things: rate easing, municipal easing, inflation targeting, nominal GDP targeting. It is just that “the forward-looking cost-benefit analysis has shifted away from the potential benefits and towards greater…

I do not take the position that other writers on this blog do that Social Security and Medicare must be protected at all costs. In fact, as you can see above, I outlined very clearly two years ago what is happening politically right now.…

This post explains both the wellspring and the significance of currency sovereignty, something that Eurozone countries gave up to join the single currency.

For ideological reasons, one might believe that limiting or reducing government is better. However, it does not follow that doing so is a painless exercise.

The economy is complex in the extreme. And what economists tend to do is model it by making a few simplifying and clarifying assumptions. Here’s the problem.

Randall Wray takes a bearish view of the Greek situation, the capital position of European banks and the future of the Euro.