(S-I) in Sectoral Balances

by Joe Blackwell

I see a lot of confusion concerning why the private sector balance is represented by (S-I) in the sectoral balances equation. This is something that confused me for a long time when starting to learn about macroeconomics, so I thought it might be a useful resource to quickly explain what (S-I) means and why it represents the balance of the private sector. Continue reading “(S-I) in Sectoral Balances”

Cat, mouse and snake

by Serban V.C. Enache

In his essay, “The Precariat: Today’s Transformative Class?”, Guy Standing tries to set up a historical context, a categorization of current class identities and class dynamics, and puts forth several measures to achieve a brighter future. It’s great that he talks about reclaiming the commons and taxing economic rents – albeit he forgets to stress that regressive taxes should be abolished while doing so. Continue reading “Cat, mouse and snake”

Milton Friedman, Hack & Fraud

by Joe Blackwell

Milton Friedman was not above using sleight of hand and sophistry to ensure his work reached the preferred conclusion. As Serban V.C Enache has shown before in this article, Friedman exaggerated the stability of the velocity of money to support his theory of inflation derived from the quantity theory of money. In light of this, I will highlight another example of Friedman’s use of sophistry to hide the empirical issues the monetarist theory runs into. Continue reading “Milton Friedman, Hack & Fraud”

The Clock’s Ticking for Turkey

by Serban V.C. Enache

The financial picture looks like this:

Turkish Government debt: 28 percent of GDP in 2017, and has been falling for several years. Private sector debt is 170 percent of GDP – and roughly 35 percent of that is denominated in foreign currency. Turkish nominal GDP growth has been solid for several years, even reaching the double digit mark. Continue reading “The Clock’s Ticking for Turkey”