by Alex J. Pollock
The cycle of sovereign borrowing, default, and new borrowing has a long and continuing history. Read More »
Actually, Sovereigns Do Go Broke
by Alex J. Pollock The cycle of sovereign borrowing, default, and new borrowing has a long and continuing history. Read More »
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Raghuram Rajan Put Forward His Recommendations To Help The Ailing Indian Economy Out quoting Raghuram Rajan via Industry Global News24 Former RBI Governor Raghuram Rajan has put forward his recommendations to help the ailing Indian economy out of the ongoing slowdown in the cover story of India Today magazine' How to Fix the Economy.' Rajan calls for reforms in this article, among other items, to liberalize finance, land and labour markets, and to promote investment and growth. He also urged India to judiciously enter free tr Everything You Need to Know About Negative Interest Rates Gerald Dwyer, American Institute for Economic Research Banking Strategy by Raghuram Rajan via Economic Times (India) Is privatisation of public sector banks the answer? Much of the discussion on privatisation seems to make assumptions based on ideological positions. India's Fiscal Deficit 'Conceals' A Lot, Warns Raghuram Rajan
quoting Raghuram Rajan via Economic Times (India) India's fiscal deficit 'conceals' a lot and is probably pushing Asia's third-largest economy to the brink of a 'worrisome' situation, former RBI governor Raghuram Rajan has warned. Delivering the OP Jindal lecture at Brown University, Rajan said the uncertainty about the overall economic vision at the top rungs is causing deep distress in the Indian economy. To halt Iran’s aggression, Trump must do more to win support for global sanctions David Adesnik | Director of Research The Repo Problem Is Deeper Than The Fed Admits quoting John H. Cochrane via Seeking Alpha There they go again! Offering a put for mismatched dealers that will continue to promote borrowing short to carry long securities. See here. For an update, see here. Borrowing short to lend long is what tanked the financial system in 2007-2008, as well as just about every other financial crisis described in This Time Is Different. Why Global Trade Imbalances Could Get Worse Before They Get Better
Posted on September 20, 2019 by Brad W. Setser NICOLE GELINAS When in Doubt, Print Money Advocates of Modern Monetary Theory want us to believe that debt doesn’t matter and that government can spend endlessly. The Balance Sheet Of Supply Side Economics by David R. Henderson via Defining Ideas A crucial policy battle that endures to this day MILTON EZRATI Save the Robots Bill de Blasio reveals his scrambled vision of innovation and labor. The Balance Sheet Of Supply Side Economics
by David R. Henderson via EconLog The major pluses of their [the supply-siders’] approach have been three. First, they came up with a way to dramatize the fact that an x percent increase in tax rates–even if it leads to higher tax revenues–will cause less than, and possibly much less than, an x percent increase in tax revenues. This was best illustrated by Arthur Laffer, with his Laffer Curve. The True Power of the Afghan Drug Trade By Gareth Rice, Grounded Curiosity: "It is hard to be optimistic about the ongoing U.S. led peace talks with the Taliban. After nearly 18 years of conflict, the Taliban and its terrorist affiliations have proved to be impressively resilient adversaries." Unless We Act Now, the Islamic State Will Rise Again
The Soufan Center: “ISIS may have been defeated on the battlefield; but thousands of Western fighters and their families remain in detention in Syria and Iraq. We do not expect terrorists to attract much sympathy. But the majority of detainees are not terrorists; they are children."
Raghuram Rajan: Economic Downturn Pushed Country Back 15 Years
quoting Raghuram Rajan via The Connect News Raghuram Rajan, the former Reserve Bank Governor has described the slowdown in the economy is happening after a long time.
What Are the Engines of Progress?
by Helen Dale Helen Dale reviews two new books that investigate the explosion of economic growth and what constitutes it. Read More » The Fed's Decentralized System And The Spread Of Economic Ideas quoting Michael D. Bordo via Wall Street Window When it comes to monetary policy, the popular commentary discusses the Federal Reserve System as a monolithic interest rate machine, raising and lowering rates to stabilize (or destabilize) the macroeconomy. More observant Fed watchers think of its big players, recognizing conflict among the voting members of the Federal Open Market Committee (FOMC). In that framing, monetary policy comes down to a battle between hawks and doves. Federal Reserve Structure, Economic Ideas, And Monetary And Financial Policy by Michael D. Bordo, Edward Prescott via The National Bureau Of Economic Research The decentralized structure of the Federal Reserve System is evaluated as a mechanism for generating and processing new ideas on monetary and financial policy. On Targeting The Price Of Gold quoting Thomas J. Sargent via CATO Thanks to President’s Trump’s picks for prospective Fed Board nominees, the subject of gold price targeting (or a gold “price rule”) is getting attention once again. How The Aspiring Can Learn To Write Like Economists featuring John H. Cochrane via Real Clear Markets Greg Mankiw’s credentials are impeccable: Former Chairman of the Harvard Economics Department and the President’s Council of Economic Advisers. What’s even more impressive is his writing. Mao's Great Famine
featuring Frank Dikötter via New Books Network In the years he ruled the People’s Republic of China, Mao Zedong presided over the greatest mass murder in human history, both in his elimination of millions of perceived political enemies and also in the starving of tens of millions in callously engineered mass famine.
http://www.naharnet.com/stories/en/263800-hariri-un-us-will-participate-in-negotiations-on-maritime-borders
● https://www.israelhayom.com/2019/08/20/taking-cue-from-hamas-hezbollah-brings-arson-terror-to-northern-border/ ● https://www.thenational.ae/business/economy/lebanon-debt-downgrade-market-discipline-or-voluntary-reforms-1.901289 ● https://www.fdd.org/analysis/2019/08/20/paraguay-designates-hezbollah-as-a-terrorist-organization/
https://www.fdd.org/analysis/2019/08/19/politics-vs-protocol/
● https://www.fdd.org/wp-content/uploads/2019/08/fdd-report-politics-vs-protocol-irans-nuclear-archive-and-the-iaeas-responsibilities.pdf ● https://www.reuters.com/article/us-mideast-iran-tanker-greece/u-s-will-act-if-iranian-tanker-tries-to-deliver-oil-to-syria-pompeo-idUSKCN1VA104?feedType=RSS&feedName=worldNews ● https://www.jpost.com/Middle-East/New-IAEA-chief-candidates-could-be-in-conflict-with-US-Israel-on-Tehran-596489 Milton Friedman On What Drives Economic Progress
featuring Milton Friedman via Wall Street Journal In this animation from a “Friedman Fundamentals” video series by PolicyEd and the Hoover Institution, Milton Friedman demonstrates how the great achievements from civilization have come from individuals pursuing their separate interests, not government. The Reader's Guide To Optimal Monetary Policy by John H. Cochrane via Grumpy Economist The Reader's Guide to Optimal Monetary Policy is a snazzy new website created by Anthony Diercks and Cole Langlois at the Federal Reserve Board. When the last Soviet leader learned a lesson in economics
James Pethokoukis | AEIdeas One of the big themes in "Gorbachev: His Life and Times" by William Taubman is an exploration of how the Soviet system ever produced someone like Mikhail Gorbachev. The Fed Is Courting Disaster by Leaving Interest Rates Too Low Nicole Gelinas, New York Post This week, the Federal Reserve likely will vote to cut interest rates — when it should be raising them. If the economy is so dependent on low interest rates that a near-record-low rate of 2.4 percent isn’t low enough, there is something wrong with the economy, and piling on more cheap debt will make the crash that much harder. Since the financial crisis of more than a decade ago, America and the world have gotten dangerously addicted to debt. The Fed has fed the addiction. Read more here.... In Defense of Hometowns A Federal Reserve report warns about Americans’ declining mobility—but should remaining committed to one’s community be regarded as a fault? The Fed Needs A Radical New Approach
mentioning John B. Taylor via Bloomberg It should change not only the way it makes policy but also the way it talks about it. Key Takeaway: The Islamic Revolutionary Guards Corps (IRGC) is expanding its economic influence and role in the Iranian regime’s effort to mitigate US sanctions, possibly seeking to outcompete the Rouhani administration. READ here. Iran-Backed Militias Are In Iraq to Stay Prime Minister Mahdi is trying to bring the Popular Mobilization Forces under control of the government, but even he probably knows it won’t work. Iran's Resistance Needs A Light Touch, Not 'Maximum Pressure' quoting Abbas Milani via Bloomberg Trump could help the democracy movement while hurting the regime. Opposing the Iranian regime doesn't have to mean sanctioning its banks and oil. Just ask Abbas Milani. The director of Stanford University’s Iran studies program cannot be called a squish when it comes to Iran; he has devoted much of his scholarship to the regime’s struggle against modernity and to understanding the country’s democracy movement. US should sanction Iran's incendiary kingmaker
(The Hill) Meet Ayatollah Ahmad Jannati, 92, who heads two powerful committees responsible for appointing Iran’s supreme leader, vetting candidates for key elected offices, and screening legislation passed by Iran’s parliament — all to ensure fidelity to the regime’s theocratic constitution and Islamist creed. The Inescapable Tragedy of Postliberalism
by James R. Rogers We can’t recover both economic localism and personalism to any significant degree and still maintain anything close to modern living standards. Read More » To Fight Terrorists, Follow the Money Prosecuting money launderers is the best way to stamp out terrorism and corruption.
New Papers
by John H. Cochrane via Grumpy Economist I've been remiss about blogging lately while I finished two new papers, "The Fiscal Roots of Inflation," and "The Value of Government Debt." I'm posting here for those who might be interested, and I appreciate comments. IMF releases final tranche of $12 billion loan to Egypt
The International Monetary Fund (IMF) on Wednesday approved the release of the final $2 billion in a $12 billion loan package to Egypt. “Egypt has successfully completed the three-year arrangement under the Extended Fund Facility and achieved its main objectives,” IMF Acting Managing Director David Lipton said in a statement. Lipton praised the Egyptian economy’s performance, attributing it to Cairo’s fiscal reforms. In addition to floating Egypt’s currency exchange rate, the unpopular austerity measures have included cuts in electricity and fuel subsidies. Read More The Classicist: Thinking Strategically About Iran
interview with Victor Davis Hanson via The Classicist Why restraint with Tehran may be the most effective position for national security hawks. US sanctions Iraqis tied to Iran-backed militias
The Treasury Department on Thursday sanctioned two former provincial governors and two militia leaders in Iraq, citing human rights violations in Ninevah province, the home of a diverse Christian minority. The two militia leaders — Rayan al-Kildani and Waad Qado — both head divisions within Iraq’s Popular Mobilization Units (PMU). Kildani is leading a Christian militia within the PMU umbrella. The sanctions also target two former governors — Nawfal al-Akoub of Mosul and Ahmed al-Jubouri of Salahuddin province. Akoub fled Mosul last year after Baghdad sacked him over corruption charges following the capsizing of an overloaded ferry that killed some 100 people. Washington accuses Jubouri of working with “Iran-backed proxies that operate outside of state control.” Read More The National Liberation Army in Colombia and Venezuela: Illicit finance challenges stemming from illegal mining
Andrés Martínez-Fernández | American Enterprise Institute Decentralise & Invent New Growth Model: Raghuram Rajan featuring Raghuram Rajan via The Time of India Former RBI governor Raghuram Rajan and Congress’s overseas unit chief Sam Pitroda have criticized the BJP government for proposing to make a nation based on "single idea (of Hindutva) and have also called for India to move away from authoritarianism and centralized control to strengthen its democracy. Raghuram Rajan: How Markets And The State Betray Communities interview with Raghuram Rajan via The Wharton School of the University of Pennsylvania Hoover Institution fellow Raghuram Rajan talks about his new book, as well as India, China, and a host of other topics. Is politics getting to the Fed?
Robert J. Barro | Project Syndicate In the early 1980s, the chairman of the US Federal Reserve, Paul Volcker, was able to choke off runaway inflation because he was able to implement steep interest-rate hikes. Today, the Fed is clearly under political pressure, and it is starting to show. |
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