Lars P. Syll — Paul Krugman — finally — admits he was wrong!

Globalization not as represented by the free traders, who now have egg on their faces and have to eat crow. To boot, trade was supposedly Paul Krugman's specialty, even though he is best known for witing a popular macro textbook. So he was one of "the experts."

Will the inapplicability of the ISLM "gadget " be next? So far, Paul Krugman is hanging onto it as it crashes and burns.

Lars P. Syll’s Blog
Paul Krugman — finally — admits he was wrong!
Lars P. Syll | Professor, Malmo University

David F. Ruccio — Global rentier capitalism

… as the authors of the new report from the United Nations Conference on Trade and Development have explained, there is a growing concern that

increasing market concentration in leading sectors of the global economy and the growing market and lobbying powers of dominant corporations are creating a new form of global rentier capitalism to the detriment of balanced and inclusive growth for the many.

And they’re not just talking about financial rentier incomes, which has been the focus of attention since the global meltdown provoked by Wall Street nine years ago. Their argument is that a defining feature of “hyperglobalization” is the proliferation of rent-seeking strategies, from technological innovations to mergers and acquisitions, within the non-financial corporate sector. The result is the growth of corporate rents or “surplus profits.”...

What happens when economists assume away asymmetry, especially of market power.

Occasional Links & Commentary
Global rentier capitalism
David F. Ruccio | Professor of Economics University of Notre Dame Notre Dame

Simon Wren-Lewis — Dani Rodrik talks straight on trade

Short review of Dani Rodrik's latest book, Straight Talk on Trade: Ideas for a Sane World Economy.

In that sense the title of the book is rather misleading. Although it is discussed a lot, this is hardly just a book about trade. Indeed the subtitle “Ideas for a sane world economy” conveys a better picture of what it is about. The book is based on a collection of articles written for Project Syndicate and elsewhere, and occasionally the joins show. But that feeling quickly gets lost in a wealth of stimulating arguments and ideas that I defy anyone to find dull. This is a fascinating book to read, and I cannot think of anyone who would not learn a great deal from reading it.

It sounds like this book is in the right ball park, dealing with the global economy as a closed system in terms of the social, political and economic issues this involves owing to national boundaries and regional affiliations. Addressing these issues successfully is the challenge of the age in order to avoid dysfunction and conflict above all, but also to aim at distributed prosperity along with fostering political stability and promoting social harmony.

Mainly Macro
Dani Rodrik talks straight on trade
Simon Wren-Lewis | Professor of Economics, Oxford University