asterisk2a + demand-curve   4

Economic policy: Paved with good intentions | The Economist
Although the debate [austerity] relates to the UK, I think it has a much wider resonance. And indeed, to a student of history, it has fascinating parallels; economic policy-making was rethought in the mid-1970s, but the same debates are popping up again. [...] Margaret Thatcher on ZIRP & QE "Let us print the money instead. Because what that is saying is let us quietly steal a cerain amount from every pound saved in building societies, in national savings, from every person who has been thrifty." [...] [ZIRP & QE is no free lunch - it has consequences, known and unknown, unintended.]
infrastructure  investment  monetary  policy  Margaret  Thatcher  Mark  Carney  Europe  reflation  zombie  banks  New  Normal  BOE  deflation  macroeconomics  macroeconomic  policy  QE  intellectual  fiscal  policy  free  lunch  UK  PIGS  debt  monetisation  Martin  Wolf  austerity  greatdepression  zombie  consumer  economic-thought  deleveraging  economics  debt  monetization  Richardkoo  liberal  economic  reform  IMF  GFC  output-gap  unintended  consequences  margaretthatcher  Troika  davidcameron  greatrecession  debtoverhang  economic  history  financial  repression  Super  Cycle  sovereign  debt  crisis  monetarism  ZIRP  demand-curve  PIIGS  fiscal  theory  supply-demand  MervynKing  GeorgeOsborne 
may 2013 by asterisk2a
The euro crisis: We haven't forgotten how to make depressions | The Economist
GREECE is in a depression. A real deal, no kidding, bad-as-the-1930s depression.

The Greek economy is imploding for no other reason than that the prices are wrong.

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sticky wages = sticky price for everything else

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1930's Depression was excaserbated by countries sticking to the Gold standard.
The Euro is today Greece's, Spain's and so forth (PIIGS) Gold Standard that is ruinous.
EU Politicians made a grave error of judgement and assumptions - and are too stuck up as always to admit mistakes and revert course, OR drive full steam ahead with fiscal integration and assuming liabilities as a whole.

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http://www.economist.com/node/21560252
book  Brussels  policy-makers  politics  economic-thought  goldstandard  gold  sticky-wages  economics  supply-demand  demand-curve  economic  history  Euro  EMU  Europe  policy  folly  policy  error  depression  2012  sovereign  debt  crisis  austerity  Greece  greatrecession  greatdepression 
august 2012 by asterisk2a
Austerity’s all very well, but someone must spend more to ensure recovery - Telegraph
All that is worth doing but it still doesn't exactly sound like a magic bullet.
That requires someone to spend more. Again, who?
There are umpteen countries which are running huge current account surpluses: last year, China's surplus was 6pc of GDP, Taiwan's 11pc, Malaysia's 17pc and Singapore's 19pc. The oil producers also ran huge surpluses – 5pc in Saudi Arabia (down from a massive 28pc the year before), 16pc in Libya and Qatar, and 26pc in Kuwait. Within Europe our two big oil producers, Russia and Norway, ran surpluses of 4pc and 14pc respectively.
Among non-oil producers in Europe, Germany and Holland ran surpluses of 5pc, and Switzerland 9pc. Moreover, these countries are in general sitting on huge international reserves. This is where the money is and it is where demand should expand.
China remains the key to Asia.
Anyway, the more important issue is the willingness of the Chinese to rebalance the economy towards consumers and away from reliance on exports.
china  consumption  economic  policy  mistake  fiscal  monetary  uk  davidcameron  USA  germany  austerity  demand  demand-curve  ECB  BOE  Fed  PBC  currencies  currency 
july 2010 by asterisk2a

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