Sweatshops and monopsony power – a review

Leicester is a medium-sized city in the centre of England.  It has come into the limelight in the last few weeks because of an outbreak of COVID-19 in the city, forcing a local lockdown, while the rest of England starts to ‘come out’.  Leicester has a relatively high British Asian community and many are concentratedContinue reading “Sweatshops and monopsony power – a review”

Trade wars and class wars: part one – the global savings glut?

This review of a new book is in two parts as there is much to say. Here is the first part. ‘Trade wars are class wars‘ is the title of a new book by Matthew Klein and Michael Pettis. Matthew C. Klein is the Economics Commentator at Barron’s. He has previously written for the FinancialContinue reading “Trade wars and class wars: part one – the global savings glut?”

The deficit myth

Stephanie Kelton is  professor of economics and public policy at Stony Brook University, a former Chief Economist on the U.S. Senate Budget Committee (Democratic staff) and was an economic policy adviser to Senator Bernie Sanders, the leftist American presidential hopeful.  Kelton is a prominent exponent and populariser of what is called Modern Monetary Theory (MMT).Continue reading “The deficit myth”

China in the post-pandemic 2020s

China’s National Peoples Congress (NPC) opened today, having been delayed by the coronavirus pandemic.  The NPC is China’s version of a parliament and used by the Communist party leaders to report on the state of the economy and outline their plans for the future, both domestically and globally. Prime Minister Li Keqiang announced that forContinue reading “China in the post-pandemic 2020s”

Profitability, investment and the pandemic

Last week’s speech by US Federal Reserve Chair Jay Powell at the Peterson Institute for International Economics, Washington was truly shocking.  Powell told his audience of economists that “The scope and speed of this downturn are without modern precedent”. One shocking fact that he announced was that, according to a special Fed survey of ‘economic well-being’Continue reading “Profitability, investment and the pandemic”

The Greek tragedy: Act Three

On Thursday night, EU leaders again failed to agree on how to provide proper fiscal support for hard-hit member states to cope with the health costs of the coronavirus pandemic and collapse of their economies from the lockdowns. The EU leaders have already agreed to a €540bn package of emergency measures.  This sounds a lotContinue reading “The Greek tragedy: Act Three”

The post-pandemic slump

The coronavirus pandemic marks the end of longest US economic expansion on record, and it will feature sharpest economic contraction since WWII. The global economy was facing the worst collapse since the second world war as coronavirus began to strike in March, well before the height of the crisis, according to the latest Brookings-FT trackingContinue reading “The post-pandemic slump”