Every week my e-mail box receives a steady stream of articles aimed at cultivating public animus to Russia. The articles are always wrapped in a narrative in which Russia is a threat to democracy in Ukraine, Eastern Europe, and elsewhere. The effect is to create public support for hardline action (economic and/or military) against Russia. […]
Read More »Anti-China Fever in the US: a lethal contagious disease
Much of the United States (especially Washington, DC) is in the grip of a contagious lethal anti-China fever which is spreading fast. Even people I usually admire and respect have become infected. Reason and facts have lost all capacity to inoculate. Fortunately, I was sent a vaccine (that takes one minute to administer) which I […]
Read More »Financialization revisited: the economics and political economy of the vampire squid economy
This paper explores the economics and political economy of financialization using Matt Taibbi’s vampire squid metaphor to characterize it. The paper makes five innovations. First, it focuses on the mechanics of the “vampire squid” process whereby financialization rotates through the economy loading sector balance sheets with debt. Second, it identifies the critical role of government […]
Read More »Preparations for the “Next Afghanistan” have already begun
Now that the twenty year-long US military expedition to Afghanistan has ended in catastrophe, the US Neocon establishment has already begun preparations for the “Next Afghanistan”. That process begins with blaming Joe Biden and rewriting history. Thus, Richard Haas (President of the Council on Foreign Relations) writes in Project Syndicate: “Biden was recently asked if […]
Read More »Financialization revisited: the economics and political economy of the vampire squid economy
This paper explores the economics and political economy of financialization using Matt Taibbi’s vampire squid metaphor to characterize it. The paper makes five innovations. First, it focuses on the mechanics of the “vampire squid” process whereby financialization rotates through the economy loading sector balance sheets with debt. Second, it identifies the critical role of government […]
Read More »The economics of New Developmentalism: a critical assessment
This paper critically assesses the economics of New Developmentalism (ND). It begins by identifying and formalizing the principal components of ND which are identified as neutralizing Dutch disease, ending growth with foreign saving, development driven by a technologically advanced and internationally competitive manufacturing private sector, and getting macroeconomic prices right. It then examines four strands […]
Read More »The Macroeconomics of Government Spending: Distinguishing Between Government Purchases, Government Production, and Job Guarantee Programs
This paper reconstructs the Keynesian income – expenditure (IE) model to include distinctions between government purchases of private sector output, government production, and government job guarantee program (JGP) employment. Analytically, including those distinctions transforms the model from a single sector model into a multi-sector model. It also surfaces the logic behind the automatic stabilizer property […]
Read More »Fascism unleashed: how the Republican Party sold its soul and now threatens democracy
This essay argues that some forty years ago the Republican Party struck a Faustian bargain whereby it traded integrity and decency for tax cuts and a corporate dominated economy. Now, the Republican party is reaping the consequences of that bargain in the form of its capture by Donald Trump and his followers. However, it also […]
Read More »Life among the Econ: fifty years on
Almost fifty years ago, the Swedish econographer Axel Leijonhufvud (1973) wrote a seminal study on the Econ tribe titled “Life among the Econ”. This study revisits the Econ and reports on their current state. Life has gotten more complicated since those bygone days. The cult of math modl-ing has spread far and wide, so that […]
Read More »2021 Godley-Tobin Lecture: Marc Lavoie, “Godley versus Tobin on Monetary Matters”
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