mainly macro: Balanced-budget fundamentalism – Simon Wren-Lewis

A yellow flag.

A yellow flag. (Photo credit: Wikipedia)

This is an excellent article by respected Oxford scholar, Simon Wren-Lewis. Check it out!

mainly macro: Balanced-budget fundamentalism.

Personally, I tend to identify with the argument here. For me, we have seen a clear rise in economic fundamentalism in both London and Berlin.

Economic fundamentalism seems to protect the wealthy and the privileged but is universally hard on the middle and working classes.

What’s the significance of the yellow-flag. Let me offer a definition:

a ship’s yellow flag, denoting the letter Q for ‘quarantine.’ When flown with another flag, it indicates disease on board; when flown alone, it indicates the absence of disease and signifies a request for customs clearance.

Economic fundamentalism is preached by economic policy-makers, like George Osborne, in the UK, who tend to have no formal training in economics. For me, the economic fundamentalists need to be identified, quarantined and neutralized.

Let me turn this to an open question:

How should we overcome economic fundamentalism in London and Berlin in favor of economic policy that recognizes the social costs of extreme policy?



mainly macro: The IMF apology nonsense: how to maintain a lie – Simon Wren-Lewis

English: Member nations of the International M...

English: Member nations of the International Monetary Fund (IMF). (Photo credit: Wikipedia)

This is a MUST-READ article by leading Oxford economist, Simon Wren-Lewis.

via mainly macro: The IMF apology nonsense: how to maintain a lie

Personally, I very much identify with the Wren-Lewis argument and conclusions.

The article examines three important spin myths put out by Cameron’s Government:

  1. The recession was somehow created by the previous government’s fiscal profligacy
  2. Cameron’s government had to “clean up the mess”, so austerity was inevitable
  3. The economic recovery, when it came, was a reward for austerity

The article then looked at how the government sponsored the idea with the media, taken up by the BBC, that the IMF had to apologize about getting the UK’s forecasts wrong and criticizing excessive austerity – all of this to deflect attention from the government’s risky Help to Buy policy.

It seriously worries me that the government’s risky economic policy has not been challenged more vigorously.

Let me turn this to an open question:

Is this evidence to support a Biderburg type conspiracy of the government, sectors of the UK media and the IMF?

Any thoughts?