Archive for June 30th, 2016

The jailed banker statistic in the making of Iceland team…

June 30, 2016

This bit of superb statistic on how Iceland got its footballers from whatever was remaining from necessary services is quite something.

The list has obviously been prepared by an Icelander who is either a person of detail or remembers and does not want to forget Iceland’s jailed bankers.

So amidst all the numbers it says Imprisoned bankers ……23



Why Ecuador escaped the fate of Venezuela despite following near similar policies?

June 30, 2016

With Prof Hanke you know the answer is always going to be dollarisation or currency boards.

So here it is. Prof Hanke says Ecuador which adopted dollarisation before its Socialist President helped save the country:


Behind Europe’s Populist Backlash: The Hunger Games of Neoliberal Economics

June 30, 2016

Another critique of mainstream economics. This one came last year but is highly relevant given Europe’s woes today.

A virulent strain of austerity capitalism takes over Europe, leaving shattered lives in its shadow, researchers Servaas Storm and C.W.M. Naastepad, Senior Lecturers in Economics at Delft University of Technology in The Netherlands, consider how things got so bad, what role economists and misguided policy-makers have played, and which models and ideas are needed to change course. In the following interview, they discuss how most are getting the story about Europe wrong. They explain how their research shows that when countries try to compete with each other by lowering wages and slashing the social safety net, the costs are high both economically and socially, and why co-operative and regulated capitalism is a far better path.

What do they say in the interview?


Wicksellian natural interest rate vs Keynesian neutral rate (and the need to know History of eco thought..)

June 30, 2016

I guess this blog could just be dedicated to the cause of knowing history and history of economic thought and be a history…:-)

With each passing day and article, one is beginning to realise how important concepts sketched out much earlier are impacting us and we have no clue.

In this post, Joseph Salerno says it is fashionable to say central banks’ policy rates should be in line with Wicksellian interest rate (How many macro people even know of Wicksell for instance?). It adds that historical dimension and prestige to it. However, this usage is more  Keynesian than Wicksellian as Wicksell would have last wanted the rates to be set by policymakers:


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