Has globalisation ended?

Apart from inflation and war, what grips current economic thought is the apparent failure of what mainstream economics likes to call ‘globalisation’.  What mainstream economics means by globalisation is the expansion of trade and capital flows freely across borders.  In 2000, the IMF identified four basic aspects of globalisation: trade and transactions, capital and investment movements, migration and […]

Has globalisation ended?

Fallen angels

In several previous posts, I have highlighted what are called ‘zombie’ companies (companies whose regular profits do not even cover the cost of servicing their outstanding debts) and so must, to paraphrase former BoE governor Mark Carney, depend on the kindness of their creditors”. An OECD study found that such zombies take up a frighteningly […]

Fallen angels

The three contradictions of the Long Depression

One of my basic theses about modern capitalism is that since 2008, the major capitalist economies have been in what I call a Long Depression.  In my book of 2016 of the same name, I distinguish between what economists call recessions or slumps in production, investment and employment; and depressions.  Under the capitalist mode of […]

The three contradictions of the Long Depression

A world rate of profit: important new evidence

Marx’s law of the tendency of the rate of profit to fall (LTRPF) has either been heavily criticised or ignored as being an irrelevant explanation of crises under capitalism, both theoretically and empirically.  The critics are not from mainstream economics, who generally ignore the role of profit in crises altogether.  They partly come from post-Keynesian […]

A world rate of profit: important new evidence

Books of the year

This is not a review of the best books of the year, but a reminder of the books that I have reviewed during 2021.  In this second year of COVID, let’s start with Adam Tooze’s Shutdown.  Tooze is the liberal left’s current favourite historian.  And Tooze is the ultimate ‘historian of the moment’.  By that […]

Books of the year

The Fed, interest rates and stagflation

“The economy has made progress toward employment and inflation goals and if progress continues broadly as expected, a moderation in the pace of asset purchases may soon be warranted”, the US Federal Reserve officials said in their September monetary policy statement. The Fed also signalled interest-rate increases may follow more quickly than expected, with 9 […]

The Fed, interest rates and stagflation