I will launch Sack the Economists, by Geoff Davies, on Sunday 4 May (3:30pm for a 4pm start) at Gleebooks, 49 Glebe Point Road Glebe NSW 2037 Sydney. The event is free, but an RSVP is required here or via phone at 02 9660 2333. Following is an edited extract pertaining to Thomas Piketty’s recent best-seller. I hope to see Sydney-side readers of this blog at the launch.]
There is no end of commentary about China’s real estate bubble, with an even split between those who believe it may pop at any moment, and others who argue it never will.
Back in the Olde Days, before the global financial crisis, when I was one of a handful raising the alarm, some of the most strident opposition to my opinion about what this might mean for housing in Australia came from Christopher Joye (who was then a Director at Rismark). We went head to head on many occasions, with me arguing that our prices were a debt-fuelled bubble, and Joye arguing that rising house prices simply reflected rising household incomes.
There are very few people who qualify as unforgettable in your life, and Ted Wilshire was one of those for me. A larger than life character in every sense of the word, Ted was best known as the Research Officer for the Australian Metal Workers Union (AMWU) who penned the then-influential pamphlets Australia Ripped Off and Australia Uprooted in the days prior to The Accord under the Hawke and Keating Governments.
A critique of a yet-to-be-published paper of mine (“Loanable Funds, Endogenous Money and Aggregate Demand”, forthcoming in the Review of Keynesian Economics later this year; the link is to a partial blog post of that paper) by non-mainstream economist Tom Palley reminds me of one of my favourite ripostes by a politician, back in the days before spin doctors stopped them saying anything offensive — or indeed anything interesting.
My call a few weeks ago that the global financial crisis is over was very much an Anglo-centric one, and a US-centric one in particular (Closing the door on the GFC, March 10).
I have been to so many countries in the last decade that my carbon footprint is Yeti-size. But one country I haven’t been to for 32 years is the one I’m in now: China.
What a difference three decades makes: my visit in 1981–82 coincided with the trial of the Gang of Four; now many sub-25 Chinese think that must be the name of a new boy band they yet haven’t heard of.
A couple of weeks ago I took a swipe at Bank of England over a speech by its Governor Mark Carney that was unrealistic about the dangers of a bloated financial sector (Godzilla is good for you? March 3). Today I’m doing the opposite: I’m doffing my cap to the researchers at Threadneedle Street for a new paper “Money creation in the modern economy,” which gives a truly realistic explanation of how money is created, why this really matters, and why virtually everything that economic textbooks say about money is wrong.
(At least for the Anglo zone; more on Europe and Emerging Markets in coming weeks).
The bigger the financial sector gets, the more it can destroy. And Bank of England Governor Mark Carney’s vision of British banks nine times the size of GDP is positively terrifying…