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Austerity-stricken Europe within a slowing global economy

, 24/09/2012

Click here for Mariana Mazuccato’s Bloomberg interview on the trouble with Europe’s austerian turn. And here for an article in Fund Strategy  on the Great Global Slowdown (featuring the Global Minotaur).

Why is the Global Crisis so persistent? Q&A with Ben Hunt (of Fund Strategy) on the themes of the Global Minotaur

, 21/09/2012

Ben Hunt, of FUND STRATEGY, posed eight poignant questions to me concerning the continuing Global Crisis and touching upon various themes from my Global Minotaur. Here is a taste of the soon to be published interview: 1. What is your understanding of what has been driving the growth in the world economy (the “engine of […]

In Praise of Public Investment: On the importance of Mariana Mazzucato’s article in The Guardian

, 03/09/2012

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 […]

The Global Minotaur just published in Italian

, 29/08/2012

The Global Minotaur has just been published in Italian under the title Il Minotauro Globale: L’America, le vere origini della crisi e il futuro dell’economia globale. Thanks to my Italian publisher for this opportunity to reach a wider audience in yet another proud nation that is continuing, with increasing intensity, to feel the repercussions of the […]

Latest Q&A on our Modest Proposal:

, 19/08/2012

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

, 17/08/2012

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 […]

A Modest Proposal for Resolving the Euro Crisis: an abridged version as published by the Financial Times On Line

, 17/08/2012

by Yanis Varoufakis[1] and Stuart Holland[2] (click here for the full version of our Modest Proposal) The Eurozone is disintegrating under the weight of three intertwined crises unfolding in the realms of banking, public debt and under-investment & internal imbalances. For two years each and every response by Europe’s leadership to the crisis proved consistently underwhelming. The [...]

Convertibility Risk: Acknowledged but not addressed

, 06/08/2012

Further to my previous post on Mr Draghi’s recent undermining of the Office of ECB President, Gavyn Davies of the FT penned the following line: “It is risky for a central banker to acknowledge that the payments system on which the currency stands may not be fully credible. Mr Draghi could simply have repeated the old […]

Depression in the Eurozone’s Periphery and how to restore Aggregate Demand without creating new bubbles: My reply to Kantoos Economics

, 30/07/2012

Preamble: Kantoos Economics recently posted an article discussing points of agreement and points of disagreement between us regarding the restoration of growth in Greece, both in the short and in the long run. Here is my reply. The problem with any Crisis is that it eliminates the type of scarcity which helps two crucial markets […]

Review of the Global Minotaur by Raja Junankar, for the ELRR

, 16/07/2012

This review of the Global Minotaur (click here for the Global Minotaur page) is special to me. The reason? Raja Junankar was one of the lecturers at the University of Essex while an undergraduate, back in the mists of time (1978-1981). Later, when I returned to Essex (after a year at Birmingham University), it was Raja who […]

'The Global Minotaur': A 'Great Transformation' for our Times – Review by Boris Stremlin for Left Eye On Books

, 12/07/2012

Left Eye on Books just published a generous and detailed review of my Global Minotaur authored by Boris Stremlin. 

Unanimity is not essential to cutting the ‘Gordian debt’: our letter to the FT as published today

, 02/07/2012

The other day I posted a letter that Stuart Holland and I sent to the Financial Times. Today it was published. Click here for the FT or…

June 2012 EU Summit Verdict: A good decision that will, probably, go to waste

, 29/06/2012

Mrs Merkel went to Brussels intent on striking two birds with one stone, pick up her bag immediately and return to Berlin with no further ado. The stone was the fraudulent re-packaging of existing structural and EIB funds (with the addition of a paltry 10 billion euros) into a grandiose-sounding ‘Growth Pact’. The two birds […]

Saving the Eurozone does not depend on Germany: Our letter to the Financial Times

, 28/06/2012

From Professors Stuart Holland and Yanis Varoufakis   Europe is deadlocked in assuming that resolving the Eurozone crisis must be unanimous. Yet it does not need this. It could do so by ‘enhanced cooperation’ which needs support by nine or more member states while, on a motion for an enhanced cooperation policy, only those supporting it […]

Mariana Mazzucato on the role of the EIB in spurring Investment-led Growth

, 21/06/2012

Professor Mariana Mazzucato, of Sussex University, has produced pivotal research on the role that public financing plays in fostering not only investment but also competition. Here she is appearing on Bloomberg to explain the importance of the European Investment Bank as a potential driver of growth, innovation and competition in the European Union. She also […]

In conversation with Rob Johnson (INET Chairman) on the Global Minotaur, the Slump, US and Europe

, 08/06/2012

A few weeks ago, while in New York, Rob Johnson (Chair of the Institute of New Economic Thinking) invited me to their offices where we recorded a conversation on my The Global Minotaur, the true causes of the Crash of 2008, the reasons why the global economy cannot find its poise after that momentous Crash, […]

On the transition to a viable Eurozone and the Modigliani-Miller Theorem: Continuing the dialogue with Kantoos Economics on the Modest Proposal (response YV3 to KE3)

, 06/06/2012

Continuing our exchange with Kantoos Economics (KE) on the Modest Proposal, today we turn to the question of the lead-up to a new Eurozone architecture. What kind of transition period will be necessary?  Also, KE asked me to respond on the relevance of the Modigliani-Theorem to our ECB-mediated debt conversion scheme that we are proposing.

Reply No. 2 (YV2) to Kantoos Economics on the merits of the Modest Proposal

, 01/06/2012

Kantoos Economics (KE) just posted the first installment of a reply to my long rejoinder to his original comment on our Modest Proposal.[1] Two are the main point raised by KE, and to which I respond below: One concerns the tradeoff between (a) maintaining market pressure on member-states to keep their public debt under wraps […]

A reply to Kantoos Economics on the merits of the Modest Proposal

, 28/05/2012

Kantoos Economics recently honoured me with an invocation to its readers to read my musings on the Euro Debacle, and to judge them critically. I thank Kantoos Economics for a simple reason: 

What does bank recapitalisation mean? An exchange with Joseph Halevi

, 27/05/2012

In reaction to my Le Monde piece, Joseph Halevi (my close friend and co-author) send me an email, regarding the meaning of bank re-capitalisation, that started as short exchange which you, dear reader, may find of interest. Any comments?

A Paradox of Risk Aversion is haunting the global economy: Rob Johnson’s poignant warning against both bubbles and austerity

, 26/05/2012

We keep forgetting that every Crisis, like a coin, has two faces. One is the mountain of debt and losses that is crushing states, people and banks. The other is an equally imposing mountain of accumulated savings that are to ‘frightened’ to fund investment, thus remaining idle and frittering away. Keynes famously invoked the Paradox […]

A Modest Proposal for Overcoming the Euro Crisis, Version 3.0 – Policy 3 significantly amended

, 19/05/2012

The Modest Proposal never ceases to evolve. Following the issue of Version 3.0, we have made some significant changes, primarily, on Policy 3 (the Investment-led Recovery, Rebalancing and Cohesion Program). Click here for the latest version. Comments welcome.

The Modest Proposal for Overcoming the Eurozone Crisis, Version 3.0

, 15/05/2012

This blog was established in order to throw useful light on the Eurozone Crisis and, in particular, to present our Modest Proposal for resolving it. The first version was presented in November 2010. Since then  we have had a number of updates. Today, I have the pleasure of posting Version 3.0, a thoroughly re-worked variant […]

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