Still crawling way behind

The IMF released its half-yearly report on the global economic outlook yesterday, just before its semi-annual meeting.  The IMF reduced again its forecast for global real GDP growth for this year to 2.9%, a cut of 0.3% pts from its July forecast and lowered its forecast for 2014 to 3.6% from its forecast of 3.8%Continue reading “Still crawling way behind”

Bernanke, banking crashes and recessions

Back in 2002, current Federal Reserve chairman Ben Bernanke made a speech in honour of monetarist economist, Milton Friedman on the occasion of his 90th birthday.  Bernanke praised the work of Friedman and his colleague Anna Schwartz.  Their seminal work (A Monetary History of the United States, 1867–1960) argued that the Great Depression of 1929-33Continue reading “Bernanke, banking crashes and recessions”

US economy in shutdown?

So the US Congress has forced a shutdown in a portion of federal government services.  From yesterday, 800,000 federal employees will be laid off without pay. This affects about one-third of federal government spending, the rest is actually exempt and, of course, Congress has agreed to ensure that American soldiers on ‘active service’ will continueContinue reading “US economy in shutdown?”