martin wolf

Nicholas Kaldor On Floating Exchange Rates

25 April 2013

Martin Wolf has a nice new column on imbalances creating troubles for the UK economy in the Financial Times: What a floating currency gives and what it does not. Why are current account deficits a haemorrhage in the flow of circular income? Weak external trade performance implies a drain in demand and hence pressure on the […]


More On Wynne Godley’s Methodology

22 July 2012

Matias Vernengo has a post on Stock-Flow Consistent Macroeconomics: Stock-Flow With Consistent Accounting (SFCA) Models. He has a nice way of giving a short description of pricing in the G&L models: In my view, the stock-flow and the demand driven (and I should say, the fact that price dynamics is orthogonal to the income flow determination […]


Martin Wolf On Wynne Godley’s Sectoral Financial Balances Approach

19 July 2012

Martin Wolf who usually writes good articles on macroeconomic developments wrote recently on the sectoral balances approach (which he uses frequently anyway). In his recent post The Balance Sheet Recession In The US he writes: … I look at this through the lens of “sectoral financial balances”, an analytical framework learned from the work of the late Wynne […]


I Like Martin Wolf

14 April 2012

Updated: 14 April 2012 at 3:30pm GMT (Chart added) Martin Wolf has just written an article on FT: Why the Bundesbank is wrong questioning the arguments made by Jens Weidmann, president of the Bundesbank. (This speech: Rebalancing Europe). This chart is interesting: (click to enlarge) Wolf says: Arguably, the crucial step is to agree on the nature of […]


Martin Wolf Pays A Generous Tribute To Anthony Thirlwall

20 February 2012

Readers of this blog will notice how I attach special importance to the balance of payments in telling the story of how economies work. In a recent blog post Can one have balance of payments crises in a currency union? at FT, Martin Wolf refers to the work of Anthony Thirlwall – who has made great contributions to the […]


Martin Wolf On EU Summit

14 December 2011

Excellent analysis of the EU Summit by Martin Wolf on FT using the sectoral balances approach: … Let me make this point by turning last week’s analysis of the balance of payments into one of foreign, private and government financial balances in eurozone members (see charts). To remind readers: these have to add up to […]


UK/US Sectoral Balances

6 December 2011

Martin Wolf wrote a blog post yesterday on FT: Understanding sectoral balances for the UK where he compares the sectoral balances for the United Kingdom and the United States. To me both the similarities and differences are interesting. The following charts are from his post:


Krugman, Wolf And Goodhart

25 November 2011

Paul Krugman has a blog  post today titled Death By Accounting Identity, commenting on Martin Wolf’s FT Article Why cutting fiscal deficits is an assault on profits, where Wolf talks about the sectoral balances identity made famous by Wynne Godley. I guess the better way to put it is that Martin Wolf is trying to make the […]


Martin Wolf At His Best!

5 November 2011

The latest article from Martin Wolf, titled Creditors can huff but they need debtors is probably his best. Martin Wolf correctly identifies the problems with world imbalances: Blessed are the creditors, for they shall inherit the earth. This is not in the Sermon on the Mount. Yet creditors believe it: if everybody were a creditor, we would […]


Nice Charts From Martin Wolf Again

18 October 2011

Martin Wolf wrote a new article There is no sunlit future for the euro for FT and it has nice graphs.