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Inequality is Killing Capitalism by Robert Skidelsky - Project Syndicate

Inequality is Killing Capitalism by Robert Skidelsky - Project Syndicate | That's Economy | Scoop.it
It was not so much predatory lenders as it was imprudent, or deluded, borrowers, who bear the blame for the financial crisis of 2008-2009.
Andrea Torre's insight:

A good point about the perils of inequality, though looking at the big design its supposed rise must be better assessed. Anyway, the author seems to fall short of suggestions when it comes to find out how to redistribute: "Concerted redistribution of wealth and income has frequently been essential to the long-term survival of capitalism". More elaboration much needed, here. 

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If in doubt, innovate

If in doubt, innovate | That's Economy | Scoop.it
IN 2010 A GROUP of students at Aalto University, just outside Helsinki, embarked on the most constructive piece of student activism in the history of the genre. They...
Andrea Torre's insight:

This article is part of a special report on The Nordic Countries. It focus on the power of business innovation and entrepreneurship as the print-money device to sustain high levels of welfare. As usual, when reading notes like this from Italy, a subtle sad feeling arises. We are just stuck in the middle of a row between a union and a carmaker around 19 (nineteen) workers. All around people from unions and parties keep worrying about steel, chemicals, cars and other old big mature industries leaving the country. And there are talks about industrial policy. But picking the right industry or, still harder, the right firm is not a task a good government is well equipped to accomplish. Let alone a bad one. Read this article to find out why designing a business friendly framework to encourage private innovation is a far smarter idea.

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Keynes, trains and automobiles

Keynes, trains and automobiles | That's Economy | Scoop.it
FOR 35 years the steel bolts holding up the ceiling of Sasago Tunnel, on a busy toll road west of Tokyo, were never checked. On December 2nd more than 600 of them...
Andrea Torre's insight:

A surge in public spending in Japan to bolster aggregate demand and economic prospects. A bold action to escape the deflationary curse that cost the country more than a "lost decade". But Keynesian measures can work only if they help boosting productivity. Otherwise, it will only leave you with a pile of fresh govt bonds to pay. On top of the already heaviest public debt in the world.

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Japan Steps Out

Japan Steps Out | That's Economy | Scoop.it
Guess who’s breaking with economic orthodoxy.
Andrea Torre's insight:

According to PK, Japan is the bravest guy in the room, leaving the macroeconomic ortodoxy built upon austerity at all costs, and entering the field of Keynesian intervention (actually even buying a lot of US Treasuries to keep down the yen). Financial markets seem to agree with this inflationary course.   

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The Real Interest-Rate Risk by Zhang Monan - Project Syndicate

The Real Interest-Rate Risk by Zhang Monan - Project Syndicate | That's Economy | Scoop.it
Since 2007, the financial crisis has pushed the world into an era of low, if not near-zero, interest rates, as most developed countries seek to reduce debt pressure and perpetuate fragile payment cycles.
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Farewell to Inflation Targeting? by Mohamed A. El-Erian - Project Syndicate

Farewell to Inflation Targeting? by Mohamed A. El-Erian - Project Syndicate | That's Economy | Scoop.it
In a four-day period in mid-December, three seemingly unrelated developments suggested that modern central banking is in the midst of an historic change.
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What is Italy Saying? by Joseph E. Stiglitz - Project Syndicate

What is Italy Saying? by Joseph E. Stiglitz - Project Syndicate | That's Economy | Scoop.it
The outcome of the Italian elections should send a clear message to Europe’s leaders: the austerity policies that they have pursued are being rejected by voters. Indeed, it will take a decade or more to recover the losses that austerity has wrought.
Andrea Torre's insight:

Stiglitz on european austerity. Fiscal discipline in recession is always bound to kill the patient, but in Europe there is apparently huge collateral damage as well. A lot of people is on a rejection mood about European Union, a project born to keep in peace a bloodythirsty continent eager to shed lives in millions just a few decades ago. 

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The voice of public choice

The voice of public choice | That's Economy | Scoop.it
A LIST of things that Americans judge more favourably than Congress, according to Public Policy Polling, a survey firm, includes colonoscopies, root canals, lice and...
Andrea Torre's insight:

Are politicians a different breed among humans? Are their decisions less prone to either errors or self interests? As per Gekko's quote "Greed is good". Even when public good is at stake. James Buchanan's work set a milestone in understanding public-choice theory and shed a light on politicians attitude to deficit spending, a powerful tool to buy consensus, while sending the bill to future taxpayers.

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The great innovation debate

The great innovation debate | That's Economy | Scoop.it
WITH the pace of technological change making heads spin, we tend to think of our age as the most innovative ever. We have smartphones and supercomputers, big data...
Andrea Torre's insight:

Will mankind invent again anything as useful as the comfortable chair depicted above? Probably, but something must be done, and a lot must not be done. By governments. Curbe red tape and excessive regulations, fix the broken patent system, reform public sector to enhance its productivity. 

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The Post-Crisis Crises by Joseph E. Stiglitz - Project Syndicate

The Post-Crisis Crises by Joseph E. Stiglitz - Project Syndicate | That's Economy | Scoop.it
In the shadow of the euro crisis and America’s fiscal cliff, it is easy to ignore the global economy’s long-term problems. But, while we focus on immediate concerns, they continue to fester, and we overlook them at our peril.
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