November 2012

Origins Of The Sectoral Balances Identity

29 November 2012

I thought I should share what I found recently about who was to state the sectoral balances identity first – since it comes across as enlightening to say the least. I found the identity in Nicholas Kaldor’s 1944 article Quantitative Aspects Of The Full Employment Problem In Britain. It was published as Appendix C to Full Employment […]


Canada’s Mark Carney To Head The Bank Of England

26 November 2012

So the news is that Mark Carney – the Governor of the Bank of Canada will now be the next Governor of the Bank of England. Wynne Godley would have been happy – had he been alive and known that Carney is perhaps the only central banker to have recognized his foresight. (Carney probably is […]


Money Supposedly Became Fiat And Hence Balance Of Payments Does Not Matter Kind Of Argument

20 November 2012

So Karl Whelan wrote another article on TARGET2 claiming once more that a loss of TARGET2 claims of the Bundesbank does not matter at all to Germany. He has a new paper as well. Earlier he was arguing there was no loss at all. His argument roughly is that since there is no longer trade […]


Joe Stiglitz’s Presentation On Global Imbalances

19 November 2012

I came across this presentation of Joe Stiglitz (from INET earlier this year) today as someone referred to it on Facebook. I think I may have referred to it earlier. Stiglitz is certainly one of the better economists in mainstream. The presentation is at Business Insider with the title Joe Stiglitz’s Presentation On Why The Entire […]


Happy Diwali!

11 November 2012

Happy Diwali to my Indian (and also non-Indian) readers! Diwali is a celebration of the triumph of good over evil. Reminds of this: I think I had best begin by making my own position clear – I regard ‘monetarism’ as a terrible curse, a visitation of evil spirits, with particularly unfortunate, one could say devastating, […]


Nicholas Kaldor On European Political Union

6 November 2012

It is sometimes said that a fiscal union would be the best solution to the Euro Area crisis – perhaps it is the only solution. Indeed while the German leaders Angela Merkel and Wolfgang Schäuble have been trying to promote “more Europe” to achieve this objective, their plan is still defective since it is likely to […]