What’s the appropriate role for the state in economic policy? As the 10th anniversary of the financial crash approaches, it’s a timely question to ask. As the crisis unfolded the state played a critical role, first in bailing out the banks, then in injecting demand into the economy in the Keynesian stimulus packages of 2009-10, and subsequently in the unconventional monetary stimulus of quantitative easing. But the conventional economic view was always that these actions were necessary evils in crisis conditions, rather than the proper role of government. And very quickly, governments reverted to the orthodoxy - austerity replaced stimulus, deficits were fetishised and public spending cut. The entirely predictable result was slow growth, insufficient to raise interest rates to anything like normal conditions, while investment has faltered, productivity growth has stalled, wages have stagnated and wealth inequality risen. We’ve effectively had … [Read more...] about ConsumerBusinessSpotlightConsumerBusinessSpotlightConsumerBusinessSpotlightConsumerBusinessSpotlightConsumerBusinessSpotlight A more active state is essential to a new economy
The new economy
Ulster Business and Osborne King gathered together some top experts to examine what’s around the corner for post-Brexit Northern Ireland, what will happen to investment and the commercial property market here ATTENDEES John Mulgrew: Let’s kick off with a general one. What are the key stumbling blocks for Northern Ireland business at this stage with the impending UK exit from the European Union? Brian Keegan: The really interesting point about your question is with less than one year away to Brexit we don’t know it’s less than a year away to Brexit. We don’t know whether Brexit is actually going to happen on March 29, we don’t know whether it’s actually going to happen at the end of December 2020, all bets are still off. The fact of the matter is there is no hard and fast contract that says the UK leaves on March 2019 or in December 2020, and that just adds a level of uncertainty. I see that as the main stumbling block. If we actually knew what … [Read more...] about Round-table: What does Brexit mean for the NI economy?
Very co-operative The idea of a sharing economy has gained huge popularity in recent years and led to the rapid growth of disruptors such as Airbnb and Uber. It's hard to believe its roots are in the 19th-century German countryside. By Dieter Schnaas, Anna Pia Möller Published on April 8, 2018 2:00 pm If they can put down their smartphone for long enough, most millenials would claim the sharing economy as their own. Whether it’s foregoing the office for a co-working space, crowdfunding a new fintech or booking an Airbnb rental for a short break (traveling with Uber, of course), the world’s 20- and 30-somethings have brought new meaning to the term co-operative. But they didn’t invent it. That honor goes to a 19th century German bureaucrat, whose then radical ideas are enjoying another day in the sun thanks to the renewed interest in all things shared. Friedrich Wilhelm Raiffeisen, born 200 years ago this month in western Germany, was a rural mayor … [Read more...] about How Germany invented the sharing economy
Peter Jones 6 April 2018 5:48 PM 6 April 2018 5:48 PM Share Twitter Facebook LinkedIn Email Whatsapp The Russian economy is not in the greatest of shapes. That being the case, one would have thought friendly diplomatic and economic relations with the West would be a priority for Vladimir Putin, given his need for cash to build weapons against threats from superpowers such as Estonia. A little Roman history would help. As has been well documented, the collapse of the Roman Empire in the west in the 5th C ad heralded something of an economic dark age for Europe for some 200 years. The long-nurtured Roman economic networks extending east as far as China simply could not survive the break-up that would create the beginnings of today’s Europe. The ancient sources, as well as the archaeological record, make clear just how connected that world had been. The emperors made sure the infrastructure was in place. As Pliny the Younger said of Trajan, ‘he … [Read more...] about Could the Russian economy benefit from some Roman history?
Economy It has to end sometime. Signs of a slowdown are accumulating. by April 6, 2018, 5:00 AM EDT A year after the world economy's synchronized boomlet was recognized, it's time to consider what the next chapter will be in the global economic story.To many people, it feels like the good times just got going, with all the major players pulling in unison. After years of moderate, patchwork expansion from the great recession, 2017 saw just about all important economies pick up steam. The big heroes were Europe and Japan, which shed their labels as sclerotic and permanent decliners.The mere fact the phrase "synchronized" has caught on should alone be cause for some worry. When the wisdom gets to be that conventional, it's about to be wrong.The expansion will likely extend through its ninth year, but is unlikely to accelerate and looks set to slow from here. I'm not predicting a recession anytime soon. We do seem to be headed for as slower pace of growth. That may be born out when … [Read more...] about Life After the Global Economy’s Synchronized Upswing