Comparing Unemployment During the Great Depression and the Great Recession

by William K. Black, New Economic Perspectives Barry Eichengreen’s and Tim Hatton’s January 1988 paper entitled “Interwar Unemployment in International Perspective” is a useful starting point for any effort to compare unemployment during the Great Depression and the Great Recession. It is useful to begin by recognizing three related cautions that the authors make in …

Why Financial Repression Will Fail

The author – Ron Hera – argues that the financial repression will fail eventually. Financial repression occurs when governments channel funds into their own sovereign bonds in order to reduce debt levels through mechanisms such as directed lending, caps on interest rates, capital controls, debt monetization, or by other means. To establish his points, Mr. Hera catches readers’ attention towards “The Liquidation of Government Debt”, “Crisis and Consequence” and many other facts.

Dealing with the Global Financial Crisis: Focus Europe

Where are the Super Heroes? Written by Macrotides In our article in March we discussed the low level of volatility in the stock market, and wondered if the perception that the European debt crisis was contained was correct. We didn’t think so, since the primary factors driving the crisis would continue to deteriorate in 2012. …

The Coming Depression in Spain: 22 Reasons Why

by The Economic Collapse What happens when debt-fueled false prosperity disappears? Just look at Spain. The 4th largest economy in the eurozone was riding high during the boom years, but now the Spanish economy is collapsing with no end in sight. When a debt bubble gets interrupted, the consequences can be rather chaotic. Just like …