The Western World in the Wealth Trap*

After years of austerity, the economy does not restart, unemployment is rising and government budgets are worsening (even in countries such as Spain with a low public debt-to-GDP ratio before the “financial crisis”). Policy makers have intervened to “save” the…Leggi tutto

Beyond the “Kindleberger Moment”, Fighting Global Austerity

Minsky Moment” entered the popular lexicon when, at the height of “phase I” of the financial crisis in mid-2008, some financial journalists and even mainstream economists discovered that there actually existed some sensible economic theory that could help us comprehend…Leggi tutto

The lessons of History, forgotten yet again

[cliccare per la traduzione italiana] An economics professor is addressing a radio audience on the grave situation facing his country. It is necessary to encourage consumer spending, he argues, in order to stimulate output and employment. If instead society tries…Leggi tutto