Historical and Socialist Views on Immigration

Socialism is NOT Liberalism

by Serban V.C. Enache

In the past, I wrote about open immigration policy being a boon to capital. It’s important to consider both sides of the balance sheet: one country is gaining people, another is losing people. Naive liberals will claim that immigration is great to have in any and all circumstances. Narrow-minded conservatives will argue that immigration is a bane on a country’s health and security. I will completely disregard such delusional thinking, and instead offer what I believe to be a balanced perspective, one that takes into account circumstances – moderation and prudence always being good tenets to follow. Continue reading “Historical and Socialist Views on Immigration”

Trump’s Art of the Deal – Trade Wars

Tariffs are a means to an end

by Serban V.C. Enache

China vowed to counter Trump’s announcement of 200 billion dollars worth of tariffs on Chinese exports to the US. If the US loses less than China, that’s called “winning” in Trump’s view. I have written in the past about protectionism, the Historical School, and the role tariffs played as a policy instrument for the development of manufacturers and overall industrialization. However, I always stressed that context is the ultimate factor in decision making. There is no policy to be followed religiously irrespective of circumstance. Continue reading “Trump’s Art of the Deal – Trade Wars”

Neoclassical Economics and Domain Assumptions

How the learned practice sophistry

by Joe Blackwell

A recent paper authored by two mainstream neoclassical economists [1], Salomon Faure and Hans Gersbach, has caused quite a stir amongst prominent heterodox economists such as Steve Keen and Richard Murphy. The paper seeks to compare and contrast two opposing models of commercial bank lending behaviour (endogenous money model and loanable funds model). Continue reading “Neoclassical Economics and Domain Assumptions”

How to Leave the Euro

A more or less Practical Guide

by Serban V.C. Enache

1) The Government spends and taxes in its own free floating fiat currency. It no longer accepts euros (or any other currency) in payment of Government (central and local) fines, fees, taxes, imposts etc.

2) The Government sector (aka the Treasury and the Central Bank) establishes a desired conversion rate between the new currency and the euro. For example, the Central Bank offers to sell 1 unit of new currency for 1 euro at a slight premium, say 0.5 or 1 percent.

3) No compulsory conversion of euro contracts into new currency contracts. It is enough to establish a level of demand for the new currency (giving it extrinsic value) through sound tax policy and adjust supply of said currency to the desired price. Continue reading “How to Leave the Euro”

Cuba: Sectoral Balances, Unemployment Rate

by Serban V.C. Enache

Between 2008 and 2015, the Cuban Government ran fiscal deficits. In 2018, the Foreign sector ran a financial surplus against Cuba of almost 4% of the country’s GDP; in 2009 and 2012 the surplus was near zero, and in 2013 it reached a surplus of 1.4 of GDP. Continue reading “Cuba: Sectoral Balances, Unemployment Rate”