Argentina’s central planners have pursued a slew of defunct monetary policies of the Keynesian, Monetarist and Mercantilist variety. Repeated default is the fruit of that labor.
Too much faith is being placed in untested economic theories that may or may not work, or may or may not even be correct
Singapore is showing the world that Keynesian stimulus and devaluation is not the true route to economic salvation.
Once such supra national taxes are established, they suffer from very little if any democratic supervision.
While some continue to argue that the US can only get its fiscal house in order by running trade and/or budget surpluses, it would seem the US’s official gold stock could be revalued to the extent that no trade or budget surplus is necessary as any sort of precondition.
Free markets are not to be blamed for the Great Recession. On the contrary, its origins rest upon the deep government and central bank intervention in the economy.
It looks as if the populist model may exhaust itself economically, too. All that is required is a sustained fall in commodity prices.
EMU’s quagmire seems to make the Anglo-Saxon economies shine brighter than fits reality…
DB Research comments on China, the EU’s banking union and the outlook for Europe’s financial system.
Lower tax burdens, less onerous regulation, and the end of state sponsored crony capitalism will energize real businesses.
Policy-administered asset monetization would stop the global financial system from seizing, restore sorely needed economic balance, and reset commercial incentives so that real growth can once again gain traction.
As the curtain eventually falls on the drama unfolding in Europe, the world will refocus its attention on the more spectacular events in the U.S.