The impending fiscal cliff could disrupt the post-financial-crisis adjustment process and benign pattern of gradual transition in the U.S. economy, however. The cases of Japan in the 1990s, and Spain more recently, demonstrate that if economies are not sufficiently advanced in their private-sector recoveries and deleveraging processes, an excessive emphasis on near-term fiscal austerity may ultimately be counterproductive.
Category: Economics
It’s Time To Make Taxes Non-Toxic
Conducting complicated, high-stakes budget negotiations on live television is a terrible idea — it’ll lead to preening and posturing and push negotiators toward oversimplified fixed positions rather than nuance or compromise. But the deeper problem is that it incentivizes negotiators to propose only safe and popular ideas, allowing both politicians and the people to shirk their core responsibilities.
Mitigating Market Abuse
Those looking to find any unfair advantage and exploit markets are investing heavily in technology, so it is critical that regulators partner with industry solutions that have the resources to continue to innovate and take advantage of new technology such as big data, cloud computing, social media and sentiment analysis.
Misconstruing Germany Will Prove to Be Death of the Euro
After my introduction, one senior official explained the German position on a banking union in just five words: “We do not want it.” I looked around to see a sea of heads nodding in agreement.
Fiscal Discipline in the Monetary Union
From the perspective of the centralised versus decentralised debate, it is immediately apparent that the compact is a decentralised solution of the US type, even if the decentralised solution is centrally imposed.
Abnormal Capitalist 