Random Shots - No Light at the End of the Tunnel?

One of the stories that caught my attention this week was the Bloomberg piece about how banks in London and New York are starting to jump ship on the old finance hubs due to fear of effects from planned regulatory tightening.

Quote Bloomberg

Banks in Europe are exploring ways to cut costs by routing . . . → Read More: Random Shots – No Light at the End of the Tunnel?

Envisioning future scenarios for India and China

Suppose we go back to 1870 and think of four interesting and promising countries.

Britain was the incumbent, the pioneer of the industrial revolution, home of Newton and Darwin, with a head start on building institutions, with sound economic policy and deep integration with a global empire.

Germany, the rising power of Europe, rapidly . . . → Read More: Envisioning future scenarios for India and China

Health Care

Health care in the USA is completely broken. Health care is a difficult problem, to be sure, but I think it’s clear that we’re currently solving it very badly. Two problems with health care: One is that people expect everyone to have the same health care as a rich person, even if they’re not . . . → Read More: Health Care

Europe VS. USA

In NY Times, Paul Krugman (link) wrote about the comparison of European and U.S economic model, concluding that in the last 10 years, the European model of social democracy led to higher standard of living and, compared to U.S in output per hour and standard of living, and relative convergence of European countries relative . . . → Read More: Europe VS. USA

Does Unconventional Monetary Policy and Unusual Fiscal Policy Presage an Upsurge in Inflation?

Unconventional monetary policy

Central banks worldwide have gone into `unconventional monetary policy’ owing to policy rates having hit the zero interest rate bound, and owing to the difficulties in finance which have impeded the monetary policy transmission. This has involved dramatic increases in money supply, purchases by central banks of government bonds and corporate . . . → Read More: Does Unconventional Monetary Policy and Unusual Fiscal Policy Presage an Upsurge in Inflation?

What Will it Take to Get Sustainable Recovery?

This morning Jim asked me how long it will take for the Australian economy to get back on a sustainable growth path. I was not able to answer directly. I suggested that what happens to economic growth in Australia will depend on what happens in the rest of the world. I added that if . . . → Read More: What Will it Take to Get Sustainable Recovery?