The global financial crisis took the vast majority of the economics profession by surprise. Though there were individual mainstream economists — such as Robert Shiller and Joseph Stiglitz — who claim to have warned of the crisis, no mainstream economic model foresaw anything like what eventuated in 2007. In fact, mainstream model predictions led to politicians being advised to expect tranquil economic conditions ahead. The OECD’s advice in its June 2007 Economic Outlook was typical:
If you know any UK secondary school student who is considering doing economics at University, please refer them to this blog post.
This Thursday, you’ll find out your A-Level results. Whatever they are, if you are considering doing an economics degree, then I want you to consider doing it at Kingston University.
Hey, great news! Australia’s unemployment rate fell by 0.4 per cent last month! Did you hear?
You didn’t? That’s funny. I was sure Joe would tell you.
Genevieve Tran, who blogs at Money Big and Small, is teaming up with graphic artist Miguel Guerra and Suzy Dias, who do the cartoons on IDEAeconomics and produce the indi-comic Super Corporate Heroes, are teaming up to produce a graphic novel version of Debunking Economics.
Genevieve is putting together a video and has sent out the following call:
What are your preconceptions about the author of a book with the title The Next Economic Disaster: Why It’s Coming and How to Avoid It? Academic? Leftist? Anti-capitalist? Anti-banker certainly?
Prepare to drop them all, because the author is none of the above. Taking the last first, the majority of his career has been in banking — and as a founder and CEO.
Mainstream economists have long ignored the dynamics of private debt, money and banks to their detriment. Now more than ever, a realistic and non-orthodox approach to economics is needed.
Last week I made my first overseas trip on which I ticked the box ‘Australian resident departing permanently’. It’s given me cause to reflect on my career as an academic economist (and part-time journalist) in Australia.
The Murray inquiry's observations on financial advice, household debt and super are commendable, but its boneheaded proposal for the government to underwrite RMBS is a concern.
A government report is always a Parson’s Egg, and I’ll start with the parts of this one that were excellent. These were its wariness about and observations on superannuation, financial advice and household debt.
The Commonwealth Bank’s response to the Senate investigation of ASIC blames incompetence and individuals for the scandals at Commonwealth Financial Planning Limited. Chief executive Ian Narev: “Poor advice provided by some of our advisers between 2003 to 2012 caused financial loss and distress and I am truly sorry for that.”
The Abbott government has reacted with predictable disdain to attacks over its policies on refugees, homeless, university students, unemployed, and welfare recipients. And why shouldn’t it? These are complaints from people who normally wouldn’t vote for them anyway, while the policies themselves appeal not only to “bolted on” Liberal voters, but also to disaffected Labor voters. It’s good politics, even if the bad press means a temporary hit in the opinion polls.
The European Stability and Growth Pact is based on the principle that stability and growth are enhanced when government deficits are either minimised or eliminated. I want you to dispassionately consider an argument that reaches a different conclusion. It may sound like something you have heard before from others and already dismissed. But bear with me.