Jean-Claude är bekymrad

Jean Claude
marknaden gör inte som den "borde" göra enligt Jean Claude.

Sanningsvittnet Reuters rapporterar om krisen:
"the cost of protecting government debt against default hitting a record high for Greece and jumping in other peripheral countries such as Portugal."

"Fiscal challenges in many states are creating market volatility, and could seriously threaten the recovery and weaken prospects for long-term growth," säger Toronto G20 i en kommuniké.

"A market backlash against countries seen to be dragging their feet on cutting debt and deficits has sparked budget cutbacks all over Europe as governments try to rein in spending."

"I firmly believe that in the current circumstances, confidence-inspiring policies will foster and not hamper economic recovery, because confidence is the key factor today," säger Jean Claude.

En sak är I alla fall säkert som amen I kyrkan, när ekonomer som Jean Claude börjar svamla psykobabbel om marknaden då har de inte en susning.
Men om nu "marknaden" vill ha åtstramning undrar man varför Irlands CDS är dyrare än Spaniens, Irland som varit bäst i klassen med åtstramning? Sen Grekland också försökt vara bäst i klassen med åtstramning har deras CDS blivit dyrare. Varför gör inte marknaden som Jean Claude, Angela, Mona m.fl. säger att den borde göra?

Bill Mitchell är som vanligt spot on när det gäller att reda ut de ekonomiska dimridåerna som är den huvudsakliga medieinformationen höljer den pågående krisen i dunkel. Nu verkar det som om han ser sin blogg i huvudsak som ett undervisningsinstrument i hans roll som ekonomiprofessor så den är "omsorgsfull" förklaringarna typ aningen tungläst.

Something is seriously wrong
The Toronto G-20 leaders’ meeting is being held this weekend (June 26-27, 2010) and one expects it will endorse the position taken at the recent G-20 annual Finance Ministers and Central Bank Governors Meeting in South Korea. ... At the Pittsburgh meeting of the G-20 leaders in September 2009 the communiqué talked about the sufficiency and quality of jobs. Six months later they had abandoned that call and are now preaching higher unemployment and increased poverty via austerity packages imposed on fragile communities. ... The only reasonable conclusion is that something is seriously wrong in the world we have constructed.
In the 1980s, we began to live in economies rather than societies or communities. It was also the period that unemployment persisted at high levels in most OECD countries. The two points are not unrelated. Unemployment arises because there is a lack of collective will. It does not arise because real wages are too high or aggregate demand too low. These are only proximate causes, if causes at all. ...

... The persistently high unemployment has been due to excessively restrictive fiscal and monetary policy stances by OECD governments driven by monetarist ideology.

The conservative reconstruction of history
I am increasingly reading analysis from the mainstream economists that attempts to reconstruct the current crisis as a fiscal crisis. The claim is that the crisis is about lax fiscal policy and that the solution to the on-going sluggish (if not continued negative) growth is to quickly withdraw all fiscal stimulus. ... For a time they were silent because it was clear that the neo-liberal macroeconomics paradigm that is forced down the throats of students around the world was incapable of providing any coherent explanation for the crisis. But they are now re-appearing, larger than life itself, and have resumed their arrogant hectoring of the policy makers and the electorate. ... They are doing this by reconstructing history and relying on our lack of memory recall and incomplete comprehension of things economic.
If you studied macroeconomics at a university over the last 20 years or more and used the standard mainstream textbooks you would be unable to understand anything about the reasons the crisis emerged

Krugmans NYT blogg kan vara bra att följa, den är sas "media savy" och kort i notiserna. Som han noterar av och till att politikerna är de som främst jagar upp marknadsspöket med dess påstådda krav på de nationella ekonomierna.



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