Leila Davis: Are Corporations’ Financial Investments Slowing Growth?

Are corporations’ financial investments crowding out other corporate spending? Leila Davis looks at the financialization of non-financial corporations—i.e., firms that traditionally produce goods and services and invest in machinery, buildings and technology rather than trade in financial assets—and asks what it means that they’re taking on large financial investments. We know that the same time … More Leila Davis: Are Corporations’ Financial Investments Slowing Growth?

Student Debt Bubble Diminishes Demand and Ruins Lives, Yet Officials Keep Inflating It

By Yves Smith, The Financial Times has a generally good update on the state of the student debt bubble in the US. The article interesting not just for what it says but also for what goes unsaid. I’ll recap its main points with additional commentary. Note that many of the underlying issues will be familiar … More Student Debt Bubble Diminishes Demand and Ruins Lives, Yet Officials Keep Inflating It

Institutions, Monetary Operations and a Demand-Led Global Economy

Macroeconomic controversies usually center on causation. Two questions of significance for policymaking concern output and growth: Is output demand or supply determined? Is economic growth demand or supply led? If demand is the driver of output and growth, there will be considerable scope for government spending to influence the economy’s trajectory. If, instead, supply-side factors … More Institutions, Monetary Operations and a Demand-Led Global Economy

Special issue of Nova Economia on Austerity and (Lack of) Growth

Originally posted here Editorial Introduction – Fiscal Austerity and Economic Growth Laura Barbosa de Carvalho PDF (English) Neoliberalism, trade imbalances, and economic policy in the Eurozone crisis Engelbert Stockhammer, Collin Constantine, Severin Reissl PDF (English) The Greek public debt problem Michalis Nikiforos, Dimitri B. Papadimitriou, Gennaro Zezza PDF (English) Aggregate demand and the slowdown of … More Special issue of Nova Economia on Austerity and (Lack of) Growth

Brazil’s Enormous Interest Rate Tax: Can Brazilians Afford It?

By Mark Weisbrot, Jake Johnston, and Julia Villarruel Carrillo This paper looks at Brazil’s unusually high interest rates. Brazil has the fourth-highest interest burden in the world on its federal debt (out of a total of 183 countries). The paper finds that this is not a result of known risk factors, but rather is due to unusually … More Brazil’s Enormous Interest Rate Tax: Can Brazilians Afford It?