Economic Bandaids and False Gods

Written by Steven Hansen Here we go again.  Election season is here and all we hear is how the incumbent or the challenger is off base and leading the U.S. to disaster.  The two biggest campaign talking points are unemployment and the U.S. budget deficit. Unfortunately, there is no candidate out there who has any …

Update: Greece, Eurozone and the IMF

by Elliott Morss Earlier, I noted there were two parts to IMF Stand-By Program for Greece: austerity and increasing its competitiveness. However, by the beginning of 2012, the IMF had concluded that the austerity part of its plan for Greece had failed. Why? Because: the austerity measures were so extreme that initial efforts to implement …

Comparing U.S. and Euro Crises

by Elliott Morss Introduction The best weather forecast comes from watching the trends: if the chance of rain increases as you get closer to the day of interest, it will probably rain….  So I start by looking at what has been happening to IMF, OECD, and World Bank predictions for economic growth for the next …

The Unexplained Part of Public Debt

by Guest Authors Camila FS Campos, Dany Jaimovich and Ugo Panizza, Voxeu How do countries get into debt? And how does this debt rise so fast? The short answer may be obvious, but this column shows that the longer answer certainly isn’t. The answer to the question “How do countries get into debt?” seems trivial. …