19th July 2012
Scandals at Barclays, JPMorgan and Goldman Sachs might give the impression that the financial sector has some serious morality problems. Unfortunately, it's worse than that: "We are dealing with a drop in ethical standards throughout the business world, and our graduate schools are partly to blame." Bloomberg View
The weak correlation between the output gap and public investment that pre-1979 UK governments presided over means that the golden age of Keynesianism was no such thing. Stumbling and Mumbling
The vast sums of cash sloshing around wastefully are a rational response to utter fear of the future. "Monetary policy has run its course. Zero interest rates and quantitative easing may have saved the world's banks from collapsing but now there's not much point in pushing those strings anymore. As for fiscal policy, that's also been exhausted." Adam Smith Institute
How accurate are the IMF's forecasts? Well, going as far back as April 1999 the IMF, on average, has only underestimated growth by 0.3 percent and overestimated growth by 0.2 percent. Therefore, the Fund's forecasts today seem to stand up fairly well. The Economist
The ‘austerity kills' narrative that some economists spout misses the basic point. Debt-to-GDP ratios would become unsustainable without retrenchment. The fact that austerity is costly does not mean it should not be undertaken. vox eu
More on Mindful Money
Sign up to our daily newsletter and you could win an Amazon Kindle Touch.