Why the ECB refuses to be a Lender of Last Resort
De Grauwe, Paul. The euro has a matter of weeks to save itself, with several institutions now preparing for its collapse. Given this, why does the ECB still refuse to bail out Europe’s heavily indebted countries? This column provides an explanation. It says that the ECB may well be behaving rationally but adds that such […]
Occupy Economics
Folbre, Nancy. The Occupy Wall Street movement, displaced from some key geographic locations, now enjoys a small but significant encampment among economists. Concerns about the impact of growing economic inequality fit neatly into a larger critique of mainstream economic theory and its deep faith in the efficiency of markets. Πηγή: The New York Times πλήρες […]
What Are They Thinking?
The common European currency seems well on its way toward annihilation, and the demise is more likely to happen with a bang than a whimper. One might have thought that the looming catastrophe would elicit a sense of urgency in the statements and actions of European officials. “Depend upon it, sir,” Samuel Johnson once told […]
The emperor has no clothes
Tabellini, Guido. Last week’s failed German government bond auction raised alarms across Europe; some say the Eurozone only has days to avoid collapse. This column argues that unless the Eurozone and particularly the ECB changes its anti-inflationary stance, the troubles will only get worse. The Eurozone is broken, and it is time to admit it. […]