Debtonomics: Currency Crisis

An argument can be made that under our present circumstances analysis of the declining economic order is not particularly relevant: it is best to look forward rather than pick over the past, to let the current regime fall apart and build something new and better on the ruins.

Bottom Line: China Rebalancing is about Handling Bad Debt

I got a lot of feedback from my January 5 blog entry because of my argument that the implementation of the reforms proposed in the Third Plenum all but guarantees that growth rates in China will slow down.

Steve Keen, Secular Stagnation and Thoughts on IS-LM

Steve Keen has produced a nice little article on secular stagnation as an explanation of the crisis, as brought up by Larry Summers and then endorsed by Paul Krugman, and its clash with the theory of endogenous money.

Secular Stagnation: A Mystery No More

I’m sorry, I couldn’t help it: when Larry Summers first made his secular stagnation speech at the IMF, and the American economics tribe heralded it as if it were the greatest (and latest) thing since sliced bread, my irony gene went into overload-and that showed in my first post on the topic.