The 1 Percent’s Solution – Paul Krugman – NYTimes.com

Paul Krugman, Laureate of the Sveriges Riksban...

Paul Krugman, Laureate of the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2008 at a press conference at the Swedish Academy of Science in Stockholm (Photo credit: Wikipedia)

This is an excellent and highly readable blog by Nobel winning, liberal, economist Paul Krugman in the NYT. Check it out!

The 1 Percent’s Solution – NYTimes.com.

The article summarizes in simple English the debate between the Keynesians and the austerians.

Despite austerity having been seriously discredited by both the IMF and professional economists, it is still favored by the top 1%, the rich and powerful.

Sadly, the top 1% are dominating the political classes at the moment. The consequence is unnecessary economic hardship for millions in both the US and Europe.

What happened to democracy?

Stop Worrying About China by Christopher T. Mahoney – Project Syndicate

This article by Christopher T. Mahoney, former Vice Chairman of Moody’s, published by Project Sydicate is RECOMMENDED READING, in my view. Check it out!

via Stop Worrying About China by Christopher T. Mahoney – Project Syndicate.

Mahoney’s article confirms my own optimistic view for China. My views were more intuitive and based on my observation when I spent a month in China last year. Mahoney’s central point is that the Chinese state can and will intervene much more strongly in China than in other large economies. By way of an example, look at the massive Keynesian intervention in 2008 when the Chinese state invested in large infrastructure projects; many would argue that this intervention precipitated inflation – on balance, I think that it was an excellent call.

English: The People's Republic of China (green).

English: The People’s Republic of China (green). (Photo credit: Wikipedia)

 

Are you optimistic or pessimistic about the economic outlook for China?

Any thoughts?

Enhanced by Zemanta