South Korean economist Ha-Joon Chang argues that although orthodox thinking is to cut debt, the most effective way for countries to grow is to boost their income. As for the recovery, this expert in emerging markets notes that the world economy is not really picking up in the way that it usually does after a big downturn. This is the first part of our conversation.
The Fed’s wavering over addressing the matter of its announced rate hike has badly affected the markets, increasing their volatility. It should act now, curbing any further speculation, and disregard recent calls from the IMF and the World Bank to further delay this move.
UBS | Monetary policy remains stimulative globally, and labor markets are tightening. Yet, global inflation is low.
By James Alexander via Historinhas | Although it appeared that the VSPs gathered in Jackson Hole could only worry about non-existent inflation, I detected a defensiveness too.
MADRID | June 14, 2015 | By JP Marín Arrese | We take for granted that close to zero rates remain the driving force for delivering growth. The massive liquidity pumped in by Central Banks in developed countries has led to this widespread belief on the merits of cheap money. But such manna brings with it a number of drawbacks.
BANGKOK | May 3, 2015 | By Benjamin Cole via Marcus Nunes‘ Historinhas | I have complained before in this space about the macroeconomic defeatism seen among both left- and right-wing economists. We are told that due to demographics and lower productivity, future economic growth must be muted. Not so.
MADRID | April 20, 2015 | By JP Marín Arrese | Governments in developed countries openly bet on monetary stimulus for getting their economies back on track. The US massive liquidity injection stood as the hallmark for similar moves by Japan and Europe. Yet, the IMF voices concern that running global governance on money tools leads to a liquidity glut while demand and output remain largely subdued.
MADRID | By Sean Duffy | The OECD´s economic outlook showed that voices calling for action in Europe are growing louder. With the outcomes of austerity and budgetary consolidation continuing to drag down the economy, Catherine L Mann´s arrival as its chief economist represents a significant coup for advocates of the opposite recipe.