Draghi Begins To Question The Stability And Growth Pact

Mario Draghi’s comments at Jackson Hole were quite worthy of comment, especially his call for more “fiscal flexibility” which is in marked opposition to Germany’s pro-austerity stance. Although the ECB President expressed this criticism in the context of retaining the … Continue reading

Time For A New Approach On Unemployment: Government As Employer Of Last Resort

The American economy has made some progress since the days of double digit unemployment, but the level is still unforgiveably high, given that we are supposedly 6 years into a “recovery.  It’s worth pondering fresh ideas as we approach Labour … Continue reading

France: Hollande Fires The Wrong Cabinet Ministers

Albert Einstein used to describe insanity as doing the same thing over and over again and expecting a different result.  That pretty well explains the ongoing nature of the Eurozone crisis.  And in France specifically whatever hopes existed that the … Continue reading

Angela Merkel Should Keep Her Trap Shut

Both the Hollande Administration in France and the Renzi government in Italy have recently delivered rebukes to the Stability and Growth Pact, indicating that unemployment was a far more pressing problem today than reaching an arbitrary fiscal deficit target.  And … Continue reading

Fiscal, Not Monetary Policy, Is The Answer

The annual Jackson Hole shindig has begun and Janet Yellen has provided her assessment of what the Fed can do going forward: “There is no simple recipe for appropriate policy….and the FOMC is particularly attentive to the need to clearly … Continue reading

Hunger Games: Putin’s Powerplay Extends To Food

The confrontation with Moscow over Ukraine is sending shockwaves across capital markets. As ECB head Mario Draghi put it last week: “Heightened geopolitical risks […] may have the potential to affect economic conditions negatively”. So far, energy has always been … Continue reading