Political Economy

Long-Range Public Investment: The Forgotten Legacy of the New Deal

In this comprehensive survey combining architectural and social policy studies, Robert D. Leighninger Jr. reappraises the enduring achievements of public investment during the New Deal era. Leighninger argues that, though these initiatives produced the lasting backbone of the U.S. physical and cultural infrastructure, the value of these long-range investments is now being forgotten. In response Leighninger systematically assesses the schools, housing, bridges, roads, power plants, courthouses, hospitals, museums, stadiums, zoos, parks, and other public facilities built under the auspices of the New Deal. Many of the structures are still in use today.

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Martin Wolf on Fiscal Tightening: The "Cutters" vs. the "Postponers"

by Peter Leyden on July 20, 2010

Martin Wolf in his Financial Times column last week, has given an interesting analysis of the arguments for and against fiscal tightening. He notes that policymakers are shifting their views on the subject, mainly due to an improved forecast for recovery, and the European response to the Greek fiscal crisis.

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New York Times: Ex-Fed Chairman Paul Volcker Pushes for Stronger Reform

by Peter Leyden on July 12, 2010

Although he pushed for more financial regulation when he was chairman of the Federal Reserve, Paul Volcker told the New York Times that he regretted staying silent while some big deregulation efforts were occurring.

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Simon Johnson: Dodd-Frank Bill Flawed but Surprising

by Peter Leyden on July 09, 2010

INET advisory board member Simon Johnson has an op-ed in today’s Bloomberg Businessweek, in which he notes that the Dodd-Frank bill, although flawed, contains an item that is, in his words, “stunning.”

First, he lists the two main flaws:

"The Volcker Rule -- aiming to limit banks’ use of their capital in risky activities -- was watered down by the administration almost as soon as it was introduced in January and has now been negotiated down to almost nothing. Banks will still be able to take big bets with their own capital, as long as the deals don’t look like traditional proprietary trading."

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Capitalism 4.0

The Birth of a New Economy in the Aftermath of Crisis

The Institute for New Economic Thinking is especially pleased to announce the publication of a terrific new book by Board Member Anatole Kaletsky that explains the recent global crisis in sweeping historical context, and points out the once-in-a-lifetime opportunity now opening up to economists - particularl Read more