Hungary, as readers of this blog well know, is struggling with a large budget deficit and a terrible balance of payments problem, which has led to a certain amount of trouble. Specifically the fighting in the streets kind. Now, the Socialist government of Ferenc Gyurcsyany came up with a simple plan to cut the deficit [...]

Am I being a little harsh with Jean Claude-Trichet? Perhaps, it is a hard (if not impossible) job he has on his hands. And in this post I did try hard to think about credible arguments in favour of the recent rate rise.
New arrival on the European economics blogging scene Claus Vistesen argues that [...]

I argued recently that John Snow should check out some economics before arguing that structural reforms in Europe and Japan would resolve the problem of global economic trade imbalances. Well……….
I was thumbing through the economics working papers section of the OECD yesterday, and I found this:

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Business week has just popularised what was previously a minority sport: debating the ‘global savings glut’ issue. Steven Roach has already responded. Really with all this high-powered economics going on, I feel sorry for the ‘layman’, since it must be kind of hard to reach a conclusion about whether or not to buy a house, [...]

The expression ‘global imbalances’ has become somewhat fashionable of late. But what exactly are these imbalances, and why are they important. The IMF in its most recent World Economic Outlook draws attention to two of them:
The (current) expansion has become less balanced. Growth has been stronger than expected in the United States, where the ?soft [...]

This is a very convenient moment to put up this post. Alan Greenspan has just admitted that he’s human like the rest of us, and that he doesn’t have a very good explanation for why long-term interest rates have been falling at a time when he and his Fed colleagues have been busy raising [...]

The euro reached its lowest level against the dollar in seven months last week dropping from a valueof $1.311 a month ago to $1.255 on Friday. This was the lowest level since last October. Undoubtedly there are a confluence of factors at work here: yesterday’s French growth numbers, longer term stagnant growth [...]

Excerpt from Kevin Drum’s 2003 interview with Paul Krugman.
Train wreck is a way overused metaphor, but we’re headed for some kind of collision, and there are three things that can happen. Just by the arithmetic, you can either have big tax increases, roll back the whole Bush program plus some; or you can sharply [...]