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Martin Wolf Says Big Stimulus Programs by Big Debtor Countries Will Create a Crisis
naked capitalism —
... is in fact the opposite of what Keynes called for in his day. Keynes' prescription then would lead to a global rebalancing, with the US depending more on internally generated demand and less on its foreign partners (who were defaulting on their government debt). But if it were successfully deployed in the US now, it wold lead to a continuation, of our excessive consumption and China's underdevelopment of its internal demand. Martin Wolf, in today's Financial Times, comes to a similar conclusion: With businesses uninterested in spending more on ...
Martin Wolf Says Big Stimulus Programs by Big Debtor Countries Will End in Tears
naked capitalism —
... is in fact the opposite of what Keynes called for in his day. Keynes' prescription then would lead to a global rebalancing, with the US depending more on internally generated demand and less on its foreign partners (who were defaulting on their government debt). But if it were successfully deployed in the US now, it wold lead to a continuation, of our excessive consumption and China's underdevelopment of its internal demand. Martin Wolf, in today's Financial Times, comes to a similar conclusion: With businesses uninterested in spending more on ...
Pink Picks
FT Alphaville —
... The US and the global economy are at risk of a severe stag-deflation, a deadly combination of economic stagnation/recession and deflation. Martin Wolfe: Global imbalances threaten the survival of liberal trade The world has run out of willing and creditworthy private borrowers. The spectacular collapse of the western financial system is a symptom of this big fact. In the short run, governments will replace private sectors as borrowers. But that cannot last for ever. ...
Readings: CDOs, Hong Kong, Petrodollars, Dow 5000, etc.
Paul Kedrosky's Infectious Greed —
... paradox of the paradox of thrift (Kasriel/NTRS) Synthetic CDOs: not saving anything (FT) Hong Kong residential sales plunge 79% (Bloomberg) Recycling Petrodollars and the current crisis (Grubel) The Decline and Fall of an Ultra Rich Online Gaming Empire (Wired) Bill Gross on Dow 5000 and the new normal (PIMCO) Global imbalances threaten the survival of liberal trade (FT) Mark-to-market is pro-cyclical (McTeer)
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2009: currency strains
Decline and Fall of Western Civilization —
... law, naturally this appears to be exactly what is happening, as long anticipated here. more attention is being paid now to china as playing a role clearly analogous to the united states in the 1930s as the "alpha creditor", with the united states now playing the role of the waning british empire. the sustained and yawning current account imbalance, now as then, is at the heart of many of our difficulties. further, yves smith comments on a column by ft's martin wolf (which follows on an earlier column) on a misinterpretation of keynes ...
Dead Keynes Blogging
EconoSpeak —
... says econometrics doesn't always confirm the predictions of textbook Keynesian models. Martin Wolf mentions something about how "deficits aimed at sustaining demand will be piled on top of the fiscal costs of rescuing banking systems bankrupted in the rush to finance excess spending by uncreditworthy households via securitised lending against overpriced houses." Don't you love that house-that-Jack-built volute? ...
Economic crisis, Doha completion, and protectionist pressure
VoxEU.org: Recent Articles —
... , Economic Policy , 20(42): 349-39 Wolf, martin (2008), " Global imbalances threaten the survival of liberal trade ," Financial Times , 2 December 2008. Note: trade share calculations are based on the COMTRADE and GTAP databases. Import protection calculations are from Brockmeier and Pelikan (2008), and the WITS, GTAP, and MAcMaps databases. This article may be reproduced with appropriate attribution. See Copyright (below). >
