Vulgar economics in despond

Mainstream economics was nonplussed by the financial crash of 2007-8 and the subsequent Great Recession of 2008-9.  The doyen of the neoclassical school, Robert Lucas, confidently claimed back in 2003, that “the central problem of depression-prevention has been solved”.  And leading Keynesian, Oliver Blanchard, now chief economist at the IMF, told us as late asContinue reading “Vulgar economics in despond”

How the official strategists were in denial

Now that the Great Recession is over, we can review how successful the official leaders of capitalist economic strategy were in forecasting the financial crisis, in dealing with it when it came and what they learnt afterwards.  The answers are unsurprisingly depressing. Before 2007, no official strategist of economic policy forecast any crisis.  US FedContinue reading “How the official strategists were in denial”

The bankruptcy of mainstream economics

Apologies for not having any new posts for a while but I’ve been working on a paper covering the various arguments by different schools of economics to explain why the Great Recession of 2008-9 took place. What is revealing is that mainstream economics (and by that I mean the economic theories of the official strategistsContinue reading “The bankruptcy of mainstream economics”

Talking about the world

I’ve just done a radio interview with It covers a range of topics: the UK election, the Eurozone crisis, the global debt crisis, the nature of the financial crisis, the bankruptcy of mainstream economics and whether economic recovery will last. Phew! Pretty much sums up my views on all the current issues. AppreciateContinue reading “Talking about the world”

Hanging by a thread

Back in early March, I posted a blog about the UK election (The British election – it’s the economy, stoopid!, 7 March 2010),  in which I argued that New Labour would be defeated in the general election expected in May.  New Labour under Tony Blair and Gordon Brown had presided over an economy that hadContinue reading “Hanging by a thread”

Doing God’s work

Lloyd Blankfein is the chief executive officer of Goldman Sachs, the world’s most powerful investment bank.  Last November, Lloyd was interviewed by the UK’ Sunday Times.  It went something like this:  “So it’s business as usual then, regardless of whether it makes most people howl at the moon with rage?  Goldman Sachs, this pillar ofContinue reading “Doing God’s work”

Inequality of opportunity

Sorry, there’s been a gap between my last blog and this.  I’ve been busy working for a living and also starting to prepare a paper for an upcoming  conference of non-mainstream economists – more on that in the future.  I’ll try to make more regular entries from now on.  There’s a lot of blog itemsContinue reading “Inequality of opportunity”

From the horse’s mouth

Alan Greenspan was chairman of the US Federal Reserve during the great credit boom of 2002-07, which, as we know, ended in the massive credit crunch and financial sector collapse and the Great Recession of 2008-9. During the boom period, he was hailed as a virtual god by Wall Street speculators and mainstream economists.  BobContinue reading “From the horse’s mouth”

The British election – it’s the economy stoopid!

Britain will go to the polls on Thursday 6 May.  The campaigns of the major parties are under way and the usual ‘scandals’ and ‘revelations’ are coming to the surface, whether it is Gordon Brown’s bullying behaviour to his staff or Lord Ashton’s economics with the truth over his ‘offshore’ tax status as the mainContinue reading “The British election – it’s the economy stoopid!”