What we need instead, today, is a candid review of what central banks cannot do. Yes, they can usually forestall panic. Yes, for better or worse they can keep zombie banks alive. No, they cannot bring on economic recovery or solve any of our deeper economic problems, from unemployment and foreclosures in America to unemployment and economic collapse in Greece and elsewhere. The sooner we stop thinking of central bankers as wizards and magicians, the better.The Guardian (UK)
Quantitative easing isn't magichttp://www.guardian.co.uk/commentisfree/2012/sep/20/quantitative-easing-not-magic-central-banks
James K. Galbraith | Lloyd M Bentsen Jr chair of government/business relations at the Lyndon B Johnson school of public affairs, the University of Texas at Austin, senior scholar with the Levy Economics Institute, and chair of the board of Economists for Peace and Security
(h/t Matias Vernengo at Naked Keynesianism)
7 comments:
Tom, the link goes to Galbraith's profile page.
Thanks, Trixie. Fixed.
Also, Galbraith discusses his latest book, "Inequality and Instability: A Study of the World Economy Just Before the Great Crisis," presented by Harvard Book Store. Galbraith argues that the financial sector links inequality to economic instability. The book challenges the viewpoint that technology is behind rising inequality. It also challenges those who have placed the blame on trade and outsourcing, presenting evidence that the rise of inequality mirrors the stock market in the U.S. and the rise of finance and of free-market policies elsewhere. Recorded 5/8/12
" It also challenges those who have placed the blame on trade and outsourcing, presenting evidence that the rise of inequality mirrors the stock market in the U.S. and the rise of finance and of free-market policies elsewhere. "
Clonal what is going on with this?
"free market policies" is code for Mercantilism.
btw have you heard about the riot at the Foxconn plant in China???
Must have cut the rations back again....
rsp,
Matt,
What Galbraith is saying is that the inequality comes not from the trade deficits, but rather the benefits of the last twenty years have flowed to the financial rent seekers, and not to the employees of the corporations. This is clearly seen in stagnant real wages.
The talk is well worth hearing.
Matt, are you posting as both Matt Franko and as Matthew Franko?
Yes
Sorry for the confusion as we are also combating some cyber impersonation here at MNE currently.
We have made some admin changes to the comment arrangements, so this should help.
Rsp,
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