Η ψυχή και το χούι
Το 1931 ο Keynes προφήτευε ότι εκατό χρόνια αργότερα οι άνθρωποι, έχοντας λύσει το οικονομικό πρόβλημα, θα δούλευαν λιγότερο και θα αφιέρωναν περισσότερο χρόνο στην απόλαυση της «αληθινής τέχνης της ζωής», πρωτίστως αναφερόμενης, βεβαίως, στις καλλιτεχνικές δημιουργίες. Η προφητεία του δεν φαίνεται να εκπληρώνεται, και αν και οι περιοδικές κρίσεις του καπιταλισμού δεν συνιστούν την […]
Fiscal policy in developing countries: Escape from procyclicality
Frankel, Jeffrey, Vegh, Carlos & Vuletin, Guillermo. With the ongoing financial turmoil in Europe, many emerging market countries are now deemed less risky than so-called “advanced” countries. This column examines why this is the case and finds that the cyclicality of a country’s fiscal policy – a sign of its riskiness – is inversely correlated with the […]
Graduation from monetary policy procyclicality
Vegh, Carlos, Vuletin, Guillermo. How do emerging markets move from procyclical fiscal and monetary policies to countercyclical ones? This column argues that a key ingredient is stronger institutions. Start and stop, procyclical macroeconomic policies have been a chronic policy problem for emerging markets. Expansionary in good times and contractionary in bad times, booms become unmanageable credit […]
Europe should choose whether it wants Greece in or out
Pisani-Ferry, Jean. For the third time in three years the Europeans’ stance on Greece is economically inconsistent. The first time was in 2009-2010 after then prime minister George Papandreou indicated that he would need to file for assistance from the International Monetary Fund. The European response was to reject the principle of IMF intervention while […]