Macroeconomics
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Emerging Markets and the Balance of Payments: Challenges to Growth and Sustainability
Mar 13, 2023
A model that captures key vulnerabilities and structural weaknesses of developing countries’ trade and production structures.
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Working Paper
Current External Challenges to the Economic Expansion of Emerging Markets
Mar 2023
A Balance-of-Payments Constrained Growth Perspective
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The Quasi-Inflation of 2021-2022: A Case of Bad Analysis and Worse Response
Feb 2, 2023
Why the conventional tools of the Phillips Curve, NAIRU, potential output, and money-supply growth are useless
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The Rise of the Global Dollar System
Jan 11, 2023
Why does the apparently prescient and correct “key currency” view remain an embattled minority view?
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Working Paper
Exorbitant Privilege? On the Rise (and Rise) of the Global Dollar System
Jan 2023
Things are going to break and central banks are going to have to respond, but the mental frame that most people will be using is not well suited for understanding how the world now works
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Time Bomb in Global Finance
Jan 4, 2023
A Bank for International Settlements study says 60+ trillion dollars of off-the-books currency swaps could be a profound, systematic risk. Robert Johnson joins Paul Jay on theAnalysis.news.
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The Great Inflation Debate: Supply Shocks and Wealth Effects in a Multipolar World Economy
Jan 3, 2023
Setting the record straight and identifying less destructive pathways forward than round after round of interest rate increases.
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Working Paper
Myth and Reality in the Great Inflation Debate: Supply Shocks and Wealth Effects in a Multipolar World Economy
Jan 2023
A critical reappraisal of the case in favor of monetary tightening pressed by inflation hawks is overdue.
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Working Paper
Why Economists Should Support Populist Antitrust Goals
Dec 2022
The Consumer Welfare Standard is severely limited or defective, preventing it from being an appropriate standard for modern antitrust.
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Global Inflation Today: What Is to Be Done?
ConferencePERI Conference, featuring INET Research Director Thomas Ferguson and INET Grantees
Dec 2–Nov 3, 2022
Emerging out of the COVID lockdown, inflation in the U.S. and globally has risen to the highest levels in 40 years. On December 2-3, PERI will host a conference to explore the causes of this global inflation spike. Conference participants will also provide critical perspectives on the austerity macroeconomic policies being implemented globally to control inflation and will propose alternative policies capable of managing inflation without imposing austerity and rising mass unemployment.
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Working Paper
Muth’s Hypothesis Under Knightian Uncertainty
Dec 2022
A Novel Account of Inflation Forecasts
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Dollar Dominance is Financial Dominance
Nov 23, 2022
What Strategies can Break This Dependency?
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You’re Living in a World Wrought by the Federal Reserve. Notice Anything Wrong?
Nov 17, 2022
In her new book, veteran Wall Street watcher and economist Nomi Prins warns that central bank strategies deployed since the financial crisis are destroying the real economy, worsening inequality, and creating societal chaos.
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Collateral Damage From Higher Interest Rates
Nov 5, 2022
Why to Be Wary of Another Volcker-Type Monetary Tightening
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Working Paper
Inflation in the Time of Corona and War: The Plight of the Developing Economies
Nov 2022
Fears of ‘stagflation’ have come back to haunt macroeconomic policy makers all over the globe
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How Corporations “Get Away With Murder” to Inflate Prices on Rent, Food, and Electricity
Oct 19, 2022
Antitrust expert Hal Singer shows how big businesses in certain industries are taking advantage of inflation worries to jack up prices far beyond their cost increases, all the while raking in robber-baron profits.
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A Nobel Award for the Wrong Model
Oct 18, 2022
Diamond-Dybvig-Bernanke is a flawed model of banking that has no room for a lender of last resort
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Bernanke v. Kindleberger: Which Credit Channel?
Oct 13, 2022
In the papers of economist Charles Kindleberger, Perry Mehrling found notes on the paper that won Ben Bernanke his Nobel Prize.
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Goats and Graduate Students: Working with and Learning from Lance Taylor
Aug 24, 2022
In memory of Lance Taylor
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In Tribute to Lance Taylor (1940 - 2022)
Aug 16, 2022
Everyone at INET is saddened by the news that our colleague Lance Taylor passed away on Monday, August 15th, 2022. His loss leaves a giant hole in our hearts as well as in the field of economics. His talents and achievements were prodigious and we will miss his cheerful and inspiring presence. Words help little on such occasions, but we would like to extend our condolences to his wife Yvonne, and his children Signe and Ian.
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5th Annual UNCTAD-YSI Summer School
Challenges and Opportunities of a New International Economic Order
YSI
WorkshopAug 1–6, 2022
The 5th UNCTAD YSI Summer School provides an opportunity to explore the Challenges and Opportunities of a New International Economic Order. The school will bring together UNCTAD experts, academics, diplomats, and young scholars from across the globe for lively and stimulating intellectual debates.
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What A Green Monetary Policy Could Look Like
Jul 12, 2022
Central banks can encourage climate-friendly investments by offering financial institutions favorable haircuts on green collateral
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Working Paper Series
Monetary Policy for the Climate? A Money View Perspective on Green Central Banking
Jul 2022
Central banks can encourage climate-friendly investments by offering financial institutions favorable haircuts on green collateral
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Wage Stagnation and Productivity: Challenging the Conventional Analysis
Jul 7, 2022
Stagnating real wages may have contributed to the slowdown of US productivity
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Working Paper
Permanent Scars: The Effects of Wages on Productivity
Jul 2022
A persistent regime of low wages may determine very negative long-term consequences on the economy.
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The Fed Tackles Kalecki
Jun 30, 2022
Ratner and Sim’s “Who Killed the Phillips Curve – A Murder Mystery”
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Why The Ukraine Crisis Will Make Little Difference to Dollar Supremacy
Jun 24, 2022
The depth of the U.S. securities market helps ensure dollar hegemony
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A Comment on Lysandrou and Nesvetailova
Jun 24, 2022
James K. Galbraith responds on the U.S. dollar system
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Inflation in a Time of Corona and War
Jun 6, 2022
Evidence-based answers to the main (policy) questions concerning the return of high inflation
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Working Paper
Inflation in the Time of Corona and War
Jun 2022
Are there alternative, less socially costly, ways to bring inflation down?
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Axel Leijunhufvud, Wide-Ranging Economist
Jun 1, 2022
An obituary for Axel Leijunhufvud (Sept 6, 1933 - May 5, 2022)
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The Dollar System in a Multi-Polar World
May 5, 2022
The multipolar financial world is here. The United States can survive it – but only with major political and economic changes at home. It’s time to start thinking about what those need to be.
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What Really Drives Long-Term Interest Rates?
Apr 29, 2022
Contrary to the neoclassical loanable funds theory, historical bond yields show Keynes was right that “convictions” anchor long-term interest rates
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Working Paper Series
Government Deficits and Interest Rates: A Keynesian View
Apr 2022
Contrary to the neoclassical loanable funds theory, historical bond yields show Keynes was right that “convictions” anchor long-term interest rates
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Letter to SEC: How Stock Buybacks Undermine Investment in Innovation for the Sake of Stock-Price Manipulation
Apr 1, 2022
A comment on the Securities and Exchange Commission’s proposed rule “Share Repurchase Disclosure Modernization”
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Working Paper
Investing in Innovation: A Policy Framework for Attaining Sustainable Prosperity in the United States
Apr 2022
Business firms are not alone in making investments in the productive capabilities required to generate innovative goods and services. Household units and government agencies also make investments in productive capabilities upon which business firms rely for their own investment activities.
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We Are Entering a New Economic World
Mar 31, 2022
Economics Nobel Laureate Michael Spence discusses the profound changes that are rippling through the global economy as we emerge from the COVID recession, where economic growth will have to rely more on productivity gains instead of the incorporation of excess labor capacity and what this would mean for countries around the world.
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On the Origins of Economic Cycles (and the Appeal of Keeping Models Simple)
Mar 22, 2022
An alternative to Dynamic Stochastic General Equilibrium (DSGE) models
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Special Drawing Rights and Elasticity in the International Monetary System
Mar 15, 2022
How could the new SDR allocation help developing countries?
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Working Paper Series
After the Allocation: What Role for the Special Drawing Rights System?
Mar 2022
How could the new SDR allocation help developing countries?
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Resource Limits to American Capitalism & The Predator State Today
Feb 10, 2022
VIDEO
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Remembering Geoffrey Harcourt (1931 - 2021)
Dec 10, 2021
The INET community mourns Harcourt’s passing
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Should Central Bank Liquidity Provision Be a Vehicle for Fiscal Discipline?
Dec 8, 2021
By helping abate the liquidity crisis, incidences of banks becoming insolvent are reduced, and hence moral hazard in its severest form is minimized.
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Working Paper Series
Central Banks Caught Between Market Liquidity and Fiscal Disciplining: A Money View Perspective on Collateral Policy
Dec 2021
By helping abate the liquidity crisis, incidences of banks becoming insolvent are reduced, and hence moral hazard in its severest form is minimized.
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Experts on Inflation: Prognosis, Political Fallout and Who’s Really to Blame
Nov 18, 2021
Economists Claudia Sahm, Servaas Storm, and Pia Malaney share their views on the problem that has everyone freaking out. Here’s what it all means for your pocketbook – and your democracy.
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Trade and Development Backstory: The Struggle Over the UNCTAD 15 Mandate
Nov 10, 2021
Governments and civil society organizations must work together with UNCTAD to provide developing countries the tools — and the transformed governance regimes — they need to “build back better” through these challenging and difficult times.
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Halloween Is Over - Are Corporate Zombies Still Out There?
Nov 4, 2021
Swift reorganization or liquidation of insolvent businesses is the single best policy to deal with corporate debt booms.
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Working Paper Series
Zombies at Large? Corporate Debt Overhang and the Macroeconomy*
Nov 2021
Swift reorganization or liquidation of insolvent businesses is the single best policy to deal with corporate debt booms.
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Progressive Neoliberalism: Biden’s Economics, Distribution, and Inflation
Sep 30, 2021
What does Biden’s economic policy mean for the future?
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Working Paper
Market Participants Neither Commit Predictable Errors nor Conform to REH
Sep 2021
Evidence from Survey Data of Inflation Forecasts
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Why the Rich Get Richer and Interest Rates Go Down
Sep 13, 2021
Going Down the Rabbit Hole at Jackson Hole
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Productive Bubbles
Jul 28, 2021
Occasionally, financial speculation fastens onto transformational technologies that have the potential to create a genuinely new economy.
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Debt Talks Episode 8 | Public Debt: How Much is Too Much?
Webinarwith Rüdiger Bachmann, Claudia Sahm, Ludwig Straub; moderated by Moritz Schularick
Hosted by Private Debt
Jun 29, 2021
Where are the US and Europe now and where could they be going?
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Standard Inflation Theory Leaves Out Social Conflict and Costs
Jun 10, 2021
What That Means For Biden’s Inflation Policy Trilemma
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What Bagehot Means for 21st Century Central Bankers
Jun 8, 2021
Is Victorian writer Walter Bagehot, whose adage “lending freely against good collateral at a penalty rate” has been gospel for central bankers, still relevant in a post-Great Financial Crisis world?
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Working Paper Series
Bagehot for Central Bankers
Jun 2021
Is Victorian writer Walter Bagehot, whose adage “lending freely against good collateral at a penalty rate” has been gospel for central bankers, still relevant in a post-Great Financial Crisis world?
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Slack in the Economy, Not Inflation, Should Be Bigger Worry
May 19, 2021
Despite fear-mongering about the latest Consumer Price Index, unemployment remains elevated and stimulus is needed to prevent a collapse in demand
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Working Paper Series
The Updated Okun Method for Estimation of Potential Output with Broad Measures of Labor Underutilization: An Empirical Analysis
May 2021
Despite fear-mongering about the latest Consumer Price Index, unemployment remains elevated and stimulus is needed to prevent a collapse in demand
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Long-Term Unemployment Is Reversible
Apr 26, 2021
Contrary to the New Keynesian paradigm, long-term unemployment can be reversed without a significant uptick in inflation
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Working Paper Series
On the Non-Inflationary Effects of Long-Term Unemployment Reductions
Apr 2021
Contrary to the New Keynesian paradigm, long-term unemployment can be reversed without a significant uptick in inflation
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Austerity Raises Covid Deaths
Mar 26, 2021
Mortality and economic data show how constraints to government spending and a skepticism of redistributive policies have made the pandemic far worse
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Working Paper Series
Lessons for the Age of Consequences: COVID-19 and the Macroeconomy
Mar 2021
Mortality and economic data show how constraints to government spending and a skepticism of redistributive policies have made the pandemic far worse
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The Economics of the 2021 American Rescue Plan
Mar 18, 2021
How to Get Relief to Those Who Need It. Gosia Glinska in Conversation with Anton Korinek
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The Full Case Against Ultra Low and Negative Interest Rates
Mar 17, 2021
There are several reasons why unprecedentedly low interest rates will probably not stimulate demand and may even threaten financial stability
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The Standard Economic Paradigm is Based on Bad Modeling
Mar 8, 2021
The New Keynesian Dynamic Stochastic General Equilibrium (DSGE) is a straightjacket for macroeconomics
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Working Paper Series
Cordon of Conformity: Why DSGE models Are Not the Future of Macroeconomics
Mar 2021
The New Keynesian Dynamic Stochastic General Equilibrium (DSGE) is a straightjacket for macroeconomics
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George Soros and Rob Johnson Endorse an Appeal to the EU: Build a Green, Fully Employed, Resilient Economy
Feb 17, 2021
Revival of failed austerity policies of the past is simply not an option
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Mainstream Economists Have Been Using a Misleading Inflation Model for 60 Years
Feb 8, 2021
Comment on Paul Krugman’s recent observations on US inflation
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The Future of Macroeconomics
Feb 1, 2021
Developments in the real economy have persistently challenged central tenets of older economic thinking, such as the supposed close connection between the money supply and inflation.
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Inflation, Import Prices, and the Labor Share
Jan 25, 2021
The Challenge to Bidenomics
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Working Paper Series
Inflation? It’s Import Prices and the Labor Share!
Jan 2021
Recognizing that inflation of the value of output and its costs of production must be equal, we focus on a cost-based macroeconomic structuralist approach in contrast to micro-oriented monetarist analysis.
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The American Rescue Act: Do Whatever It Takes
Jan 19, 2021
The economy is likely to be crippled for months and fiscal rescue on a large scale, once again, is very much necessary.
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Best of Mankiw: Errors and Tangles in the World's Best-Selling Economics Textbooks
Jan 3, 2021
On the occasion of the ASSA 2021 Virtual Annual Meeting (Jan. 3-5), Peter Bofinger presents a “10 Best of” Mankiw list
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An Effective Response to Europe’s Fiscal Paralysis
Nov 30, 2020
Individual EU member states ought to issue perpetual bonds
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Final Response to Andrew Smithers
Oct 5, 2020
Lance Taylor and Özlem Ömer respond to Andrew Smithers’s final comment on their working paper
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Final Comments on Lance Taylor’s “On the ‘Global Savings Glut”
Oct 5, 2020
The third and final round of response from Andrew Smithers on Lance Taylor’s INET working paper on the alleged “global savings glut.”
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The Future of Work | What is Technology? Accelerator, Enabler, or Displacer?
Webinarmoderated by Katya Klinova with Long Chen, Anton Korinek and John Van Reenen
Sep 29, 2020
Human societies have always coevolved with technology, but how can we think of technology? Is it an external force outside our control, or do we have a say in its direction, development and deployment?
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Research Webinar & Book Launch: Macroeconomic Inequality From Reagan to Trump
WebinarSep 18, 2020
A discussion with Lance Taylor and Özlem Ömer, authors of INET’s new book Macroeconomics Inequality from Reagan to Trump
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America’s Dire Inequality Demands a New Conceptual Framework. This Economist Has One.
Sep 10, 2020
In a new book from Cambridge University Press, Lance Taylor reveals that wage repression — far more than monopoly power, offshoring or technological change — is driving rising inequality.
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Comment on Lance Taylor’s “’Savings Glut’ Fables and International Trade Theory: An Autopsy”
Aug 24, 2020
Financial commentator Andrew Smithers responds to Lance Taylor’s INET working paper. You may also read Taylor’s response to Smithers’s comment here.
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Reply to Andrew Smithers
Aug 24, 2020
Lance Taylor responds to Andrew Smithers’s comment on his INET working paper, “Germany and China Have Savings Gluts, the USA Is a Sump: So What?”
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“Savings Glut” Fables and International Trade Theory: An Autopsy
Aug 11, 2020
A “global saving glut” was invented by Ben Bernanke in 2005 as a label for positive net lending (imports exceeding exports) to the American economy by the rest of the world. However, there is a more plausible explanation for the persistent trade imbalance between the US and its major trading partners.
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Working Paper
Germany and China Have Savings Gluts, the USA Is a Sump: So What?
Aug 2020
An alternative look at the “global savings glut”
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The Good, the Bad, and the Ugly About the Fed’s New Credit Allocation Policy
Jun 30, 2020
The Fed is taking an aggressive approach to put out the economic fires of the pandemic. But it needs to allow for flexibility as some business models irreparably change.
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The COVID-19 Bailout and its Financing Dilemmas
Jun 30, 2020
The speed and duration of COVID-19 economic recovery will depend on how the government will finance emergency programs.
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Profits from Job Losses Will Finance Government Borrowing for COVID-19 Bailouts
Jun 18, 2020
COVID has meant unemployment for the many and a corporate profit-fueled windfall for the few.
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What is Work?
Jun 10, 2020
What counts as work and what doesn’t?
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Corona Crisis and Eurobonds
May 26, 2020
The Calamity of Germany’s Distorted Perception of Italy
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Chile’s Outburst of Discontent
May 6, 2020
How the fear-of-the-new transformed a “miracle” into an aborted attempt at catching-up
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The Eurozone in Crisis
May 4, 2020
A Report From the Front Line
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Europe and the Need for Multilateralism
Apr 14, 2020
A call to action for a world economy in crisis
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Research & Policy Workshops
IMPORTANT: Due to growing concerns around the coronavirus, the INET Conference, as well as these workshops will be postponed.
YSI
WorkshopApr 13–15, 2020
IMPORTANT: Due to growing concerns around the coronavirus, the INET Conference, as well as these workshops will be postponed. Applicants will soon be provided further information.
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In Italy and Elsewhere, Expansionary Public Spending is Key to Recovery from Covid-19
Apr 7, 2020
Austerity policies will slow recovery and should be rejected
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CARES Will Care for Wall Street and Big Business, for Macroeconomic Balance Maybe Not So Much
Apr 6, 2020
Much historical commentary emphasizes how pandemics restructure long-standing social and political arrangements. The observation applies to macroeconomics as well.
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The EU’s Green Deal: Bismarck’s ‘What Is Possible’ versus Thunberg’s ‘What Is Imperative’ in the Age of Covid-19
Apr 1, 2020
What ails the EU Green Deal is exactly what troubles the Union in general — an absence of social democracy at work
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The COVID-19 Recession: Unprecedented Collapse and the Need for Macro Policy
Mar 26, 2020
Effective and quick federal policy response is critical to create conditions for a quick recovery.
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Covid-19 Hits the Dual Economy
Mar 26, 2020
Incomes Destroyed at the Bottom, Profits Supported at the Top
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Coronavirus Means Zero Hour for the European Union
Mar 16, 2020
If the European Central Bank does not jump to the aid of peripheral countries weakened by the pandemic, the Eurozone could collapse.
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A Money View of Keynes, Keynesians, and Post-Keynesians
Feb 4, 2020
The central bank today is not just the government’s bank, but also a bankers’ bank, a truly hybrid institution
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Working Paper Series
Payment vs. Funding: The Law of Reflux for Today
Feb 2020
The central bank today is not just the government’s bank, but also a bankers’ bank, a truly hybrid institution