Tag Archives: U.S. Policy

1. What are the major flaws you see within Modern Monetary Theory? (A) I like to say that MMT is a mix of “old” and “new” ideas. The old ideas are well known among Keynesian economists and are correct, but the new ideas are either misleading or wrong. The essential old idea, which everybody knows, is [...]

Thomas Carothers has recently written an article in Foreign Affairs, the prestigious elite journal published by the US based Council on Foreign Relations. The article asks is the US hypocritical for criticizing Russian election medlling? Given the place of publication, the unsurprising conclusion is it is not. The problem is the US is a champion [...]

This paper argues neoliberalism is engaged in a war against the welfare state. At issue are competing views regarding the size of the welfare state and how it should be organized. In waging this war, neoliberalism seeks to politically discredit the traditional welfare state and change the economic structure so that the latter becomes unviable. [...]

The neocon factor dramatically changes the interpretation of the Trump administration’s unilateralist international economic policy chatter. Donald Trump’s first one hundred days have revealed his inclination for unilateralism in international relations. That inclination reflects his opportunistic and bullying disposition, and it also fits well with his anti-globalization pose. Trump’s unilateralism has also spawned a dangerous waltz with [...]

Trumponomics: How Trump skillfully used anti-globalization as bait to cover up his extremely neoliberal switch. A key element of Trump’s political success has been his masquerade of being pro-worker, which includes posturing as being anti-globalization. However, his true economic interests are the exact opposite. That creates conflict between Trump’s political and economic interests. For political leaders [...]

Federal Reserve Chairman William McChesney Martin famously declared that the Federal Reserve “is in the position of the chaperone who has ordered the punch bowl removed just when the party was really warming up.” This paper uses the punch bowl metaphor to analyze how the Federal Reserve can improve monetary policy so as to deliver [...]

A key element of Trump’s political success has been his masquerade of being pro-worker, which includes posturing as anti-globalization. However, his true economic interest is the exact opposite. That creates conflict between Trump’s political and economic interests. Understanding the calculus of that conflict is critical for understanding and predicting Trump’s economic policy, especially his international [...]

A debate on negative interest rates. YES, Thomas Palley: “One can have too much of a good thing”. NO, Adam Posen: “Negative interest rates have proved useful”. READ IT HERE

Wednesday’s decision by the Federal Reserve to raise interest rates is unwelcome and unnecessary. As admitted in its statement, investment remains soft, growth is only moderate, and inflation expectations are little changed. Moreover, the economy confronts financial headwinds from the recent jump in long term interest rates and an even stronger dollar. The Federal Reserve seems [...]

Dear Secretary Clinton and President Obama: On April 20, 1653, Oliver Cromwell spoke these words to the Long Parliament: “You have sat here too long for any good you have been doing… Depart, I say, and let us have done with you. In the name of god, go.” Secretary Clinton, you are rightly being blamed for the electoral [...]