by Summary:
Review and critique of the latest OECD World Economic Outlook, from a Marxian POV. Useful. The key for me, as readers of this blog know, is what is happening to the profitability of capital in the major economies. If profitability is rising, then corporate investment and economic growth will follow – but also vice versa. But if profitability and profits are falling, debt accumulated will become a major burden. Eventually the zombies will start to go bankrupt, spreading across sectors and a slump will ensue. Financial prices will quickly collapse toward the real value of their underlying productive assets.Indeed, according to Goldman Sachs economists, the prices of financial assets (bonds and stocks) are currently at their highest against actual earnings since 1900!What the OECD and
Topics:
Mike Norman considers the following as important: business cycle, Debt, financial cycle, global economy, Marxian Economics, minsky moment, OECD, productivity
This could be interesting, too:
Review and critique of the latest OECD World Economic Outlook, from a Marxian POV. Useful. The key for me, as readers of this blog know, is what is happening to the profitability of capital in the major economies. If profitability is rising, then corporate investment and economic growth will follow – but also vice versa. But if profitability and profits are falling, debt accumulated will become a major burden. Eventually the zombies will start to go bankrupt, spreading across sectors and a slump will ensue. Financial prices will quickly collapse toward the real value of their underlying productive assets.Indeed, according to Goldman Sachs economists, the prices of financial assets (bonds and stocks) are currently at their highest against actual earnings since 1900!What the OECD and
Topics:
Mike Norman considers the following as important: business cycle, Debt, financial cycle, global economy, Marxian Economics, minsky moment, OECD, productivity
This could be interesting, too:
Merijn T. Knibbe writes In Greece, gross fixed investment still is at a pre-industrial level.
Merijn T. Knibbe writes ´Fryslan boppe´. An in-depth inspirational analysis of work rewarded with the 2024 Riksbank prize in economic sciences.
Robert Skidelsky writes Britain’s Illusory Fiscal Black Hole
John Quiggin writes In their plaintive call for a return to the office, CEOs reveal how little they are needed
Review and critique of the latest OECD World Economic Outlook, from a Marxian POV. Useful.
The key for me, as readers of this blog know, is what is happening to the profitability of capital in the major economies. If profitability is rising, then corporate investment and economic growth will follow – but also vice versa. But if profitability and profits are falling, debt accumulated will become a major burden. Eventually the zombies will start to go bankrupt, spreading across sectors and a slump will ensue. Financial prices will quickly collapse toward the real value of their underlying productive assets.Michael Roberts Blog
Indeed, according to Goldman Sachs economists, the prices of financial assets (bonds and stocks) are currently at their highest against actual earnings since 1900!
What the OECD and IMF reports show is that if there is a downturn in profitability, the next slump will be severe, given that private debt (both corporate and household) has not been ‘deleveraged’ in the last nine years – indeed on the contrary.…
Boom or bust?
Michael Roberts