Amplifications

Will we ever grow out of growth?

January 3, 2012

By Kenneth Rogoff

The views expressed are his own.

Modern macroeconomics often seems to treat rapid and stable economic growth as the be-all and end-all of policy. That message is echoed in political debates, central-bank boardrooms, and front-page headlines. But does it really make sense to take growth as the main social objective in perpetuity, as economics textbooks implicitly assume?

Why Ron Paul is so challenging to liberals

December 29, 2011

By Matt Stoller

The views expressed are his own.

The most perplexing character in Congress, ideologically speaking, is Ron Paul. This is a guy who exists in the Republican Party as a staunch opponent of American empire and big finance. His ideas on the Federal Reserve have taken some hold recently, and he has taken powerful runs at the Presidency on the obscure topic of monetary policy. He doesn’t play by standard political rules, so while old newsletters bearing his name showcase obvious white supremacy, he is also the only prominent politician, let alone Presidential candidate, saying that the drug war has racist origins. You cannot honestly look at this figure without acknowledging both elements, as well as his opposition to war, the Federal government, and the Federal Reserve. And as I’ve drilled into Paul’s ideas, his ideas forced me to acknowledge some deep contradictions in American liberalism (pointed out years ago by Christopher Laesch) and what is a long-standing, disturbing, and unacknowledged affinity liberals have with centralized war financing. So while I have my views of Ron Paul, I believe that the anger he inspires comes not from his positions, but from the tensions that modern American liberals bear within their own worldview.

A centralized Europe is a globalized Europe

December 27, 2011

By Jean-Claude Trichet

The views expressed are his own.

PARIS – Whenever people seek a justification for European integration, they are always tempted to look backwards. They stress that European integration banished the specter of war from the old continent. And European integration has, indeed, delivered the longest period of peace and prosperity that Europe has known for many centuries.

The power of living in truth

December 20, 2011

By Jeffrey D. Sachs

The views expressed are his own.


The world’s greatest shortage is not of oil, clean water, or food, but of moral leadership. With a commitment to truth – scientific, ethical, and personal – a society can overcome the many crises of poverty, disease, hunger, and instability that confront us. Yet power abhors truth, and battles it relentlessly. So let us pause to express gratitude to Václav Havel, who died this month, for enabling a generation to gain the chance to live in truth.

Fragile and unbalanced in 2012

December 15, 2011

Nouriel Roubini
The opinions expressed are his own.

The outlook for the global economy in 2012 is clear, but it isn’t pretty: recession in Europe, anemic growth at best in the United States, and a sharp slowdown in China and in most emerging-market economies. Asian economies are exposed to China. Latin America is exposed to lower commodity prices (as both China and the advanced economies slow). Central and Eastern Europe are exposed to the eurozone. And turmoil in the Middle East is causing serious economic risks – both there and elsewhere – as geopolitical risk remains high and thus high oil prices will constrain global growth.

The 70% solution

November 30, 2011

By J. Bradford DeLong
The opinions expressed are his own.

Via a circuitous Internet chain – Paul Krugman of Princeton University quoting Mark Thoma of the University of Oregon reading the Journal of Economic Perspectives – I got a copy of an article written by Emmanuel Saez, whose office is 50 feet from mine, on the same corridor, and the Nobel laureate economist Peter Diamond. Saez and Diamond argue that the right marginal tax rate for North Atlantic societies to impose on their richest citizens is 70%.

Asia is no longer a safe bet

November 28, 2011

By Stephen S. Roach
The opinions expressed are his own.

For the second time in three years, global economic recovery is at risk. In 2008, it was all about the subprime crisis made in America. Today, it is the sovereign-debt crisis made in Europe. The alarm bells should be ringing loud and clear across Asia – an export-led region that cannot afford to ignore repeated shocks to its two largest sources of external demand.

Down with the Eurozone

November 11, 2011

By Nouriel Roubini
The opinions expressed are his own.

The eurozone crisis seems to be reaching its climax, with Greece on the verge of default and an inglorious exit from the monetary union, and now Italy on the verge of losing market access. But the eurozone’s problems are much deeper. They are structural, and they severely affect at least four other economies: Ireland, Portugal, Cyprus, and Spain.

The undeserving one percent?

November 10, 2011

By Raghuram Rajan
The opinions expressed are his own.

It is amazing how the “one percent” epithet, a reference to the top 1% of earners, has caught on in the United States and elsewhere in the developed world. In the United States, this 1% includes all those with a 2006 household income of at least $386,000. In the popular narrative, the 1% is thickly populated with unscrupulous corporate titans, greedy bankers, and insider-trading hedge-fund managers. Reading some progressive economists, it might seem that the answer to all of America’s current problems is to tax the 1% and redistribute to everyone else.

Why the euro needs to fall

November 3, 2011

By Kenneth Rogoff
The opinions expressed are his own.

Although I appreciate that exchange rates are never easy to explain or understand, I find today’s relatively robust value for the euro somewhat mysterious. Do the gnomes of currency markets seriously believe that the eurozone governments’ latest “comprehensive package” to save the euro will hold up for more than a few months?