Articles
Articles and analyses from the INET community on the key economic questions of our time.
Why 'Grexit' could be good for Greece
It is a shame that Greece was unable to manage its finances and is now slipping into chaos. But this outcome was inevitable and could not be permanently averted with loans from the international community.
What Even Famous Mainstream Economists Miss About the Cambridge Capital Controversies
Non-mainstream economists are disputing neoclassical ideas about capital.
Fiscal implications of the ECB’s bond-buying program
The monetary-fiscal policy connection is under scrutiny by the German Constitutional Court in the context of the ECB’s OMT bond-buying programme. This column argues that most analyses are deeply flawed by the misapplication of private-company default principles to the central bank. ECB bond-buying transforms public bonds into monetary base, and sovereign-default risk into inflation risk. The real question is: What is the non-inflationary limit to money-base expansion? This depends upon the economic situation and is much higher in the current liquidity-trap setting.