Why asymmetrical monetary unions are bound to fail (unless they feature an effective, extra-market surplus recycling mechanism)
Asymmetrical monetary unions, wherever and whenever tried in combination with free trade and deregulated capital movements, ended up in tears and retribution. The Gold Standard, the various pegs between domestic currencies and the US dollar (S.E. Asia, Argentina, Mexico etc.), the ERM (European Exchange Rate Mechanism), the Eurozone that followed the latter’s collapse etc. they […]
Dimitris Polymenopoulos interviewed me recently on behalf of Greek-American newspaper The Greek Star. Click here for the original source or read on…
Moralising is not a good foundation for macroeconomic policy, especially at a time of Crisis. Still, moral objections to sound policy recommendations must be taken seriously as they have the potential to prevent their adoption, with terrible consequences for all. Here, I respond to a Portuguese reader’s question regarding double standards in the moral assessment […]
Following his article on the Modest Proposal 4.0, Jorge Nascimento Rodrigues invited six economists to comment on it. Here are their responses. With rejoinders added by myself and Stuart Holland.
Portuguese readers have returned (see this and this, for the original Q&As) with two more questions on the Modest Proposal‘s limited debt conversion policy (with which we believe the Eurozone’s debt crisis could be dealt a decisive blow). I do not understand quite well the “moral “ difference between mutualizing the debt above Maastricht rule […]
On the legality, mechanics and effectiveness of the Modest Proposal’s policy regarding the Eurozone’s debt crisis
Our Q&As on aspects on the Modest Proposal 4.0 continue here with a barrage of pertinent questions posed by a Slovak reader. They concern our recommended Limited Debt Conversion Programme (Policy 2 here) with which we believe the Eurozone’s debt crisis can be resolved. (Tomorrow’s post continues the conversation turning to the issue of moral harazed, […]
The debate on the Modest Proposal 4.0 is hotting up. Here are comprehensive answers to queries from Portuguese readers of Exrpesso magazine concerning debt haircuts, the European Stability Mechanism, the differences between a Debt Redemption Fund and our Modest Proposal etc. My answers were later incorporated into this comprehensive story by Jorge Nascimento Rodrigues.
A reader has sent us a set of questions regarding Modest Proposal 4.0 and, in particular, (a) the role of the ECB in converting the Maastricht compliant part of member-state public debt, and (b) the EIB’s involvement in our Investment-led Recovery Program. His questions allow us to clarify the proposed policies.
NEW: A Modest Proposal for Resolving the Euro Crisis, Version 4.0 – by Yanis Varoufakis, Stuart Holland and James K. Galbraith
For a year now, Europe has been lying to itself, pretending that the Euro Crisis has been, more or less, resolved. It is now clear that the Euro Crisis is alive and well and threatening Europe with disintegration, permanent damage, widespread poverty, a loss of democratic legitimacy and a swing toward misanthropy. Our Modest Proposal […]
This blog was initially established to discuss the global crisis of 2008 and, in particular, to promote our Modest Proposal for Resolving the Euro Crisis. As Version 4.0 of the Modest Proposal is being prepared (and will be published early next week), it is perhaps time to take stock of almost four years of Euro […]
"Europe's house is on fire. No room for complacency." – Keynote by James Galbraith at the European Parliament
On June 27, James Galbraith keynoted a conference at the European Parliament entitled “Achieving Europe,” sponsored by the parliamentary socialists and social democrats. Listen here. Brief closing statement here.
EUROPE AFTER THE CRISIS: Combining the feasible, the desirable and the essential (Lecture in Greek, Athens 4th June)
Το «Τhe Hub Events» και ο Νικόλας Πρωτονοτάριος οργάνωσαν την Τρίτη 4 Ιουνίου 2013, στις 20:00 την τελευταία για φέτος συνάντηση του Hub Science, στο πλαίσιο του οποίου πραγματοποιήθηκε η διάλεξη του καθηγητή οικονομικής θεωρίας και συγγραφέα Γιάνη Βαρουφάκη με θέμα «Η Ευρώπη μετά την κρίση: Μεταξύ του εφικτού, του επιθυμητού και του απαραίτητου». Πατήστε εδώ για […]
On 8th February 2013, the Texas International Law Journal organised a conference on the theme of The Nation State and its Banks. Click here for the full program. The organisers were kind enough to invite me to give the lunchtime talk, which I chose to be European Banking Union: Behind the rhetoric. You can here an […]
“The euro zone slips into the Merkel-recession”, writes Robert Misik in the German Trades Union Federation’s magazine AGAINST APERTURE. But, he adds, there are realistic alternatives. Some economists have developed ambitious plans. The DGB a Marshall Plan for Europe is one such. Click here to go to Misic’s webpage or read on…
Debt, Europe, Greece and the World Economy: Addressing the Kreisky Forum, Vienna, Wednesday 5th December 2012
Anyone in Vienna this coming Wednesday (5/12/2012)? If so, perhaps you may pop in at the Kreisky Forum to hear me address: THE GREEK CRISIS AND THE EUROPEAN TRAGEDY THE DEBT CRISIS AND THE FUTURE OF THE WORLD ECONOMY For the official announcement…
Robert Gottliebsen, one of Australia’s leading business and economics journalist, interviewed me recently in Melbourne for Business Spectator. Like many anglosaxon business commentators, Robert clearly thinks that Greece is facing an impossible future within the Eurozone and that it would be better off leaving the currency union. In this interview, he began by asking me […]
The worst enemies of European unity are those who profess to serve it: Address at the CPA Sydney Conference, 2012
Last week, Norman Lamont and I addressed the CPA 2012 Conference in Melbourne. Yesterday we repeated that ‘gig’ in Sydney. Unwilling to deliver the same speech as in Melbourne (which was posted here), I chose to discuss the Euro Crisis from a slightly different angle (with very few overlapping paragraphs). As this was a closed-to-the-public […]
While the Columbia University technicians are preparing a proper podcast of my debate with Marshall Auerback (held last Friday, 5th October) on the Euro Crisis at the Columbia Law School, readers can have a pre-hearing (as opposed to a preview) of my presentation. The audio is reasonable and can be heard here: YV talk Columbia […]
Tom Hirst, of Mindful Money, has posted a thoughtful piece on the Euro Crisis, with special emphasis on the deathtrap that Spain is now in. His analysis of the situation is spot on: so far, Europe’s responses to the Crisis have been piecemeal, disconnected from one another, and based on the denial that this is […]
Two are the greatest untruths that have inflicted major damage upon our understanding of how social economies work; and, by extension, upon our societies. First, there is the pseudo-‘law’ of ‘crowding out’; i.e. the illusory belief that when public investment increases private investment suffers. Secondly, there is a widespread misconception that, under capitalism, value is […]
Mindful Money has just published an interview in which I answer three of their questions on the Modest Proposal and its differences from the plan to bolster the Eurozone by granting a banking licence to the EFSF-ESM. Click here for the complete article or read on for the barebones Q&A…
What Mr Draghi should be aiming at: Or how to move from Ponzi Austerity to Rational Crisis Management by a stepwise implementation of the Modest Proposal
Ponzi growth happens when unsustainable capital flows, wilfully predicated upon funding schemes that Reason knows to be fraudulent, give rise to large spurts of economic activity. Ponzi austerity, in contrast, is what happens when unsustainable spending cuts, wilfully predicated upon funding schemes that Reason knows to be fraudulent, cause significant drops in economic activity. (Click […]