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Thursday 24 Aug 2017 | 13:52 | SYDNEY
Thursday 24 Aug 2017 | 13:52 | SYDNEY

Thursday linkage: Economics edition

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COMMENTS

21 May 2009 14:58

  • Martin Wolf’s latest does a neat job of setting out what the current crisis has told us about the world economy (the continued centrality of the US and China’s rise), lists some of the major risks to the outlook (the state of household and government indebtedness: ‘The state, meanwhile, is back, but it is also looking ever more bankrupt’), and takes a punt on what it all means. His conclusion? ‘Capitalism is dead; long live capitalism.’
  • The appropriate role of fiscal policy in response to the crisis continues to be the subject of economic and political debate, including on The Interpreter.  Max Corden has a short essay in the CEPR Policy Insight series that provides an analytical look at fiscal stimulus and the consequences of its financing.
  • An alternative to traditional development policy: via Economist’s View, Michael Perelman has an interesting post looking at a development idea of Stanford’s Paul Romer. Poor developing countries should contract with richer economies to get the latter to set up Hong Kongs for them – a kind of super Special Economic Zone, where governance is contracted out to a foreign state: Romer suggests Canada or Finland as possible managers.
  • My colleague Malcolm Cook pointed me to this one: according to the China Daily, China’s outward foreign direct investment (FDI) could eclipse inward FDI this year. The reason? A combination of Chinese regulatory changes making outward FDI easier and the global economic crisis that is crimping FDI into China.
  • There is a long and entertaining essay by John Lancaster in the London Review of Books, covering, among other things, the largest loss in British corporate history and the World’s Worst Banker; the ‘catastrophic formula’ that combined too big to fail with no transparency; the state of the UK economy:

...we in Britain are, to use a technical economic term, screwed...

...the dangers of drinks parties:

Most of us have had a few drinks at a party and done something embarrassing, usually along the lines of I’ve-always-fancied-you-isn’t-it-time-we-did-something-about-it, but let’s take comfort in the following truth: none of us has ever done anything as embarrassing as buying HBOS

...and the nature of the US and UK bank bailout plans and their ‘tremendous, Basil Fawltyish lengths’ to avoid public ownership:

Both the British and the American plans to help the banks are very, very, very expensive variations on the theme of sticking their fingers in their ears and loudly singing “La, la, la, I’m not listening”.

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