Category Archives: Economics & Finance

Reflections on economics, investment and the financial world

Does money really grow on trees?

A few months ago David Cameron, the Prime Minister, defending the government’s austerity policy said that “Money doesn’t grow on trees!”, a well used expression when discussing household budgets. The Financial Times economics columnist Martin Wolf responded that money did … Continue reading

Share
Posted in Economics & Finance, Politics UK | Tagged , , | 2 Comments

Reinventing liberal economics

In a recent post I expressed frustration that conventional economics seems to have survived the meltdown of 2008 almost unscathed, as evidenced the chatter around the discussion of monetary policy. I mentioned one book, George Cooper’s Money, Blood and Revolution, … Continue reading

Share
Posted in Economics & Finance | Tagged , , | Leave a comment

Pensions, savings: sensible steps forward

This week’s UK Budget has revealed the usual muddle amongst politicians, journalists and the public over the whole issue of pensions and savings – with opinion strongly favouring several flavours of having your cake and eating it. This masks some … Continue reading

Share
Posted in Economics & Finance, Politics UK | Tagged , , , , , , | Leave a comment

Economics is in denial. A new crisis builds

When the financial meltdown of 2008 to 2009 occurred, most people said that the science of economics was in state of collapse. And yet conventional economics ploughed on with barely a wobble. To see this you only have to listen to the commentary … Continue reading

Share
Posted in Economics & Finance, World | Leave a comment

Re-shoring: good news that does not make us feel better

The British economy is perplexing economists. The economy as a whole is growing but we as individuals don’t seem to be any better off. Unemployment tumbles but pay stays rooted to the spot. This is called the “productivity puzzle”. Added … Continue reading

Share
Posted in Economics & Finance | Tagged , , | Leave a comment

Britain’s improved growth points to more government austerity

The UK economy has improved dramatically in the last six months. This is one of the most important developments in British politics. This week’s good news on employment is just part of a wide spectrum of measures showing the economy’s … Continue reading

Share
Posted in Economics & Finance, Politics UK | Tagged , , | Leave a comment

Inequality should be at the heart of the economic debate

Today the eminent US economist Larry Summers writes in the FT. His subject is the US economy, but the problem he addresses affects most developed economies in some shape or form, and the British economy quite closely. Unfortunately, so many … Continue reading

Share
Posted in Economics & Finance, Politics UK | Tagged , , , , | Leave a comment

The glorious irrelevance of Paul Krugman

The economic crisis that started in 2007 exposed deep flaws in conventional macroeconomics. This was wonderfully exposed by Adair Turner, as I have posted before. But many of the macroeconomics’s big beasts seem to plough on regardless. Most shameless of these … Continue reading

Share
Posted in Economics & Finance | Tagged , , , , | Leave a comment

What is neoliberalism? The left’s muddle does not help reverse its progress

Political movements tend to be united by what they oppose, rather than any positive things they stand for. Today the political left unite against a universal enemy, which they name “neoliberalism”. The word is bandied about much as “socialism” is by … Continue reading

Share
Posted in Economics & Finance, World | Tagged , , | 5 Comments

The Twitter launch tells you all you need to know about financial markets

Yesterday Twitter launched itself onto the financial markets by offering a small proportion of its share for sale. The company sold them for $26 each. By the close of the day they were being sold for $44; during the day they … Continue reading

Share
Posted in Economics & Finance | Tagged , , , | Leave a comment