On Whose Research Is the Case for Austerity Mistakenly Based?

by Jeffrey Frankel, Jeff Frankel’s Weblog Several of my colleagues on the Harvard faculty have recently been casualties in the cross-fire between fiscal austerians and stimulators. Economists Carmen Reinhart and Ken Rogoff have received an unbelievable amount of press attention, ever since they were discovered by three researchers at the University of Massachusetts to have …

The Euro Mess Gets Messier

by Elliott Morss, Morss Global Finance Introduction I have not written about problems in the Eurozone and surrounding areas since last October since nothing had changed. The Eurozone is in the process of falling apart because what I called the “weak sisters” will never be able to compete with Germany, the Netherlands, and Austria. But …

The 2013 Economic Outlook – Bright Sunshine for the U.S., Periods of Cloud Abroad

by Paul Kasriel, The Econtrarian Author’s Warning: Do not attempt reading the entirety of this commentary without the aid of your stimulant of choice. I apologize for the length of the commentary, but believed it necessary in order to inform new readers of my basic approach to macroeconomics. In future shorter (I promise) commentaries, there …

Stratfor: 2013 Is A European Decision Year

By George Friedman, Stratfor Founder and Chief Executive Officer The end of the year always prompts questions about what the most important issue of the next year may be. It’s a simplistic question, since every year sees many things happen and for each of us a different one might be important. But it is still …

The Myth of Austerity

by Philipp Bagus, Mises.org Many politicians and commentators such as Paul Krugman claim that Europe’s problem is austerity, i.e., there is insufficient government spending. The common argument goes like this: Due to a reduction of government spending, there is insufficient demand in the economy leading to unemployment. The unemployment makes things even worse as aggregate …