Blogs

New Institute Website: Beta Version

Preview our new site for fresh blog posts, event coverage and more!

Much of our older content is still being ported over while we test for kinks, but take a look and let us know what you think. 

The Coming China Crisis

Rapid private-debt growth threw Japan into crisis in 1991 and did the same to the United States and Europe in 2008. China may be next.

Originally posted on Democracy Journal

On the morning of September 8, 2016, the Wenzhou Credit Trust, one of the many trust companies in China, went into default. The firm discontinued all new lending and suspended redemption and interest payments on its trust certificates, the equivalent of deposits made by its customers. Read more

Get a TAN, Yanis: A Timely Alternative Financing Instrument for Greece

The recent election of an explicitly anti-austerity party in Greece has upset the prevailing policy consensus in the eurozone, and raised a number of issues that have remained ignored or suppressed in policy circles. Expansionary fiscal consolidations have proven largely elusive. The difficulty of achieving GDP growth while reaching primary fiscal surplus targets is very evident in Greece. Avoiding rapidly escalating government debt to GDP ratios has consequently proven very challenging. Even if the arithmetic of avoiding a debt trap can be made to work, the rise of opposition parties in the eurozone suggests there are indeed political limits to fiscal consolidation. Read more

Mission-Oriented Finance for Innovation: new ideas for investment-led growth

“The important thing for Government is not to do things which individuals are doing already, and to do them a little better or a little worse; but to do those things which at present are not done at all.” John M. Keynes, The End of Laissez Faire, 1926 (p. 44)

If there are two words we’re guaranteed to hear a lot of as the economic debate gets heated in the run up to the UK elections it’s “debt” and “deficit”. And even more so in the US elections! Read more

Why Understanding Money Matters in Greece

By Robert W. Parenteau, CFA and Marshall Auerback

As Greece staggers under the weight of a depression exceeding that of the 1930s in the US, it appears difficult to see a way forward from what is becoming increasingly a Ponzi financed, extend and pretend, “bailout” scheme. In fact, there are much more creative and effective ways to solve some of the macrofinancial dilemmas that Greece is facing, and without Greece having to exit the euro. But these solutions challenge many existing economic paradigms, including the concept of “money” itself. Read more

Rana Dasgupta: Can Democracy Survive Aggressive Global Capitalism?

In the naughts, British-born novelist and author Rana Dasgupta was thrilled to call Delhi his home —a city still buzzing with possibility after India’s 1991 entry into the world of market-driven capitalism. Today, he raises concerns that India’s economic rise has come with massive inequality, environmental destruction, and potential social unrest. In Part 2 of an interview with the Institute for New Economic thinking, Dasgupta shares his view of the contradictions and tensions of India’s economic and political scenes. Read more

Drooping Green Shoots

Back in early 2009, commentators starting seeing “green shoots” of economic recovery. More than five years later they may finally be growing into GDP and employment. Read more

Rana Dasgupta: How India’s Traumatic Capitalism is Reshaping the World

A British national of Bengali origin, novelist Rana Dasgupta recently turned to nonfiction to explore the explosive social and economic changes in Delhi starting in 1991, when India launched a series of profoundly transformative economic reforms. In Capital: The Eruption of Delhi, he describes a city where the epic hopes of globalization have dimmed in the face of a sterner, more elitist world. Read more

Paul Krugman on the MIT History

  My friend and "grown-up kid" Yann Giraud just called my attention to Paul Krugman's recent column, "Empire of the Institute", on Roy Weintraub's recently edited HOPE volume " Read more