A very interesting video by an Irish economist explaining how the current reduce government spending ("austerity") approach to the Eurozone debt and currency crisis is doomed to fail. It is doomed because cutting government spending in a recession only makes the recession worse, which in turn, reduces tax collections which then makes the government deficits … Continue reading David McWilliams Explains Why Austerity Is Doomed In Europe
Ireland
Iceland Shows Banks Are Not Too Big To Fail
Few nations were hit harder initially by the financial crisis in 2008 than Iceland. It's economy had grown rich around four very large (relative to Iceland) banks that were players in the big global casino financial industry expansion. In the U.S., U.K., and most other large developed countries governments responded with large bank-bailout packages. The … Continue reading Iceland Shows Banks Are Not Too Big To Fail
Are Banks Necessary?
At first pass the question "Are banks necessary?" strikes a macroeconomist as absurd. Of course, we say. But what does the empirical record say? It actually happened in Ireland some 35-45 years ago. From Wikipedia: Irish bank strikes 1966-1976 From Wikipedia, the free encyclopedia The Irish bank strikes between 1966 and 1976 were three strikes of about … Continue reading Are Banks Necessary?
Ireland: “Responsible” Policy Punishes Citizens for Bankers’ Sins
Poor Ireland. For some unknown reason, the Irish seem doomed to suffer under the misguided rule of others, despite being the source of great music, culture and a brew so good For centuries, the oppressor was the English. In this century Ireland has fallen under the boot of the bankers and The Powers … Continue reading Ireland: “Responsible” Policy Punishes Citizens for Bankers’ Sins
GDP vs. GNP
Gross Domestic Product (GDP) is the measure economists typically use to indicate the total size or value of economic production in an economy. There is a similar measure called Gross National Product (GNP). Older readers from the U.S. will probably remember learning something about GNP when they were younger. That's because until a few decades … Continue reading GDP vs. GNP
Ireland’s hurting
Ireland, the former Celtic Tiger gets bitten by the crisis. See NY Times (free registration may be required): The Irish Economy
EconProph 