I was asked a question by a student today and I thought I would share my answer in this blog. The question: “You rightly call the global financial crisis of ’08 the North American crisis – in attribution, correctly, to its origin. In the same light I was wondering why you don’t refer to the… Continue Reading
Tag Archives: US
Being pro-markets, not pro-business
Being pro-business risks supporting incumbent firms against new entrants – this is not good. * Economists are generally in favour of markets as ways to organise activity. Introductory microeconomics teaches students about how a competitive market brings demand and supply together efficiently: consumers get choice in what to buy, and companies are forced to be… Continue Reading
Some recent books that help explain the world
I see my job as trying to understand what is going on in the world of economics and finance, mainly by reading the research of others, and communicating it as best I can to others. It’s a privilege of my job that I have the time to read some of the fascinating books produced by… Continue Reading
Populism then and now – EMBA elective reading 1(*)
Consider the following list of political facts: high and rising income inequality; a perception that global market forces are leaving local people powerless; anti-immigrant feelings; blaming banks and monopolistic corporations; a perception that politics is dominated by the rich; anxiety about culture and values being eroded. This might well describe the US and some European… Continue Reading
Is the US government hiding its true level of debt?
Yesterday in class a question arose as to whether the Federal Reserve (the US central bank) is keeping US government interest rates down by buying government bonds in the market. By adding to the demand for bonds, relative to a given supply, the Fed would be pushing up the price and this would automatically push… Continue Reading