24th November 2011
"Behavioural economics, whilst interesting, by no means has the whip-hand in explaining the way the economy is functioning now or has functioned these past few years." Andrew Lilico gives us a lesson on orthodox rationality-based models. The Telegraph
Simon Johnson explains how the euro zone can learn from Korea, which came through its crisis in the late 1990's. "The key was a large depreciation of the currency, the won – just as depreciation of the euro seems to be one likely way that the eurozone will turn the corner." Project Syndicate
After the super committee failed to agree on federal deficit cuts, R. Glenn Hubbard says there's still ways to cut spending: "The obvious place to begin is the repeal of ObamaCare. We also need to empower the states, streamline the federal government and modernize Medicare and Social Security." Hoover Institution
China can't be expected to lead a rescue of Europe's teetering economy. "But as the risk of pain in Asia grows, some kind of concerted effort is looking essential." The Diplomat
That's pretty much what Andrew Haldane of the Bank of England, is calling a large part of modern finance. "Finance fooled investors into believing that it had found a way to earn higher returns, whereas all it was really doing was piling on hidden risk." New York Times
Got any other suggestions for what we should be reading? Tell us below?
To receive our free email newsletter sign up here.