Financial crisis: what the US authorities should do

The aim should be to avoid a deep recession or prolonged weak growth, and to avoid a rapid recovery, which would induce a rise in inflationary expectations. This means a year or more of sub-trend growth, i.e. GDP plus or minus 1 per cent per annum. I think we have a good chance of muddling […]

Are Corporate Balance Sheets In Good Shape?

There have been large changes in the way in which corporate balance sheets and profit and loss accounts are complied. Whereas 20 or 30 years ago, profits or losses generally reflected the difference between the original book cost of an item and the proceeds from its sale, today asset prices are designed to represent their […]