German Investment: The Pedal Is Off the Metal

There is an ongoing discussion on whether Germany is underinvesting and whether it could do more to increase its growth through investment. An analysis of recent trends produced by Roubini (subscription only; referenced today in Bloomberg) shows that German investment is low when measured against its current ability to invest, and is unlikely to significantly […]

Inept Diplomacy, Indispensable Currency

The announcements by several European governments that they would join the new Asian Infrastructure Investment Bank (AIIB) have been widely seen as indicators of the declining position of the U.S.  The AIIB had been proposed by China for the purpose of funding much-needed infrastructure projects in Asian countries. The U.S. had discouraged other governments from joining, ostensibly […]

Is Finland’s Economy Suffering From Secular Stagnation?

“After the Great Depression, secular stagnation turned out to be a figment of economists’ imaginations…… is still too soon to tell if this will also be the case after the Great Recession. However, the risks of secular stagnation are much greater in depressed Eurozone economies than in the US, due to less favourable demographics, lower […]

My Big Fat Greek Crisis

Not since the era of Aeschylus, Sophocles and Euripides has Greek drama enjoyed such popularity. Audiences are riveted by provocative dialogue (“immoral beggar”; “fiscal water boarding”), tested themes (a Greek David versus a German and European Union (“EU”) Goliath), modish pop science (game theory) and sex (a Greek Finance Minister who attracts attention in equal […]

Public Banking and Boom Bust Boom

While in Spain for the launch of my Modern Money Primer in Spanish, I gave a long interview for Public Television. Parts of that interview are interspersed in this segment on Public Banking: My interview is in English (with Spanish subtitles) while the rest is in Spanish. Other portions of my interview will be […]

Does Putin’s Proposed Eurasian Currency Union Make Sense?

At a meeting in Kazakhstan last week,  Russian  President Vladimir Putin proposed a currency union for the members of the Eurasian Economic Union (EAEU).  Russia, Kazakhstan, Belarus, and Armenia are the current members, and Kyrgyzstan is scheduled to join later this spring. Does a common currency for the EAEU make sense? Not in economic terms, […]

Is the Euro Irreversible? Computer Says ‘No’

Here is a logician’s or mathematician’s approach to disprove Draghi’s “the euro is irreversible” assertion, with an astrophysics aside. First question: Do you believe that the euro will exist in 10 billion years from now, with all 18 countries as members? [If yes, multiply by 10 and repeat until credibility is zero (the end of […]

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