web analytics

Institute for New Economic Thinking

Written By: - Date published: 10:30 am, December 23rd, 2010 - 3 comments
Categories: Economy, Keynes - Tags: ,

All those who think Keynes is dead (and those who merely wondered what happened to him) should check out the website of George Soros’s Institute for New Economic Thinking (INET). A remarkable range of economic luminaries are presented on video and powerpoint, most or all of them arguing for a radical Keynesian solution to the financial crisis, in the form of an expansion of public spending, mainly focused on remedying the accumulated social deficit of the last few decades, for instance affordable housing and transport infrastructure.

The current austerity policies being pursued by European politicians and advocated by US Teabaggers will fail, and once they do fail, it will be an end to ‘business as usual’.

It may also be an end to politics as usual, depending on how corrupt the current political party systems are seen to be by that time.

Some of the presentations are a little academic, but most of the ones that I have seen could be grasped by the intelligent ordinary viewer. I would recommend people to start with the video presentation and powerpoint of Richard Woo, which can be found on the link at the first INET conference, held at King’s College Cambridge in April 2010.

One thing that comes across as remarkable is how radical even mainstream public servants, such as the British chief financial regulator Lord Turner, now sound compared to local equivalents such as Bollard and Brash. Turner calls for a serious wing-clipping of the real estate sector, which he describes as being behind “every” banking crisis in recent memory, in the sense that that bank lending drives up the values of real estate assets and at the sime time drives the banks to over-extend themselves in a largely unproductive sector. According to Lord Turner, the real challenge is to break the bank / real estate nexus. And that’s the cautious civil service view!

In effect, it seems that a Gorbachev moment has now come to the heartlands of neoliberalism, while New Zealand remains a kind of East Germany by comparison.

3 comments on “Institute for New Economic Thinking ”

  1. Bored 1

    In effect, it seems that a Gorbachev moment has now come to the heartlands of neoliberalism, while New Zealand remains a kind of East Germany by comparison. No advances upon a Polish shipyard it would seem…..26 years of neo liberalism, yippeee!!!!!!!!!!

  2. Jenny 2

    From Bill Rosenberg today

    Inequality, bargaining power, debt and financial crises

    With no Economic Bulletin this month, here is some remarkable thinking to ponder on during the break.

    The International Monetary Fund (IMF) – the citadel and enforcer of neoliberalism – is doing some rethinking. This example is worth pondering. The attached magazine article outlines the thinking, and it goes like this.

    Income inequalities have built up enormously over the last few years in the US. Wage earners have compensated for stagnating or falling incomes by borrowing. The 5 percent of the population who have become fantastically rich can’t spend all the money pouring in so they lend much of it to the other 95 percent. So the other 95 percent have become increasingly indebted – and many of them cannot repay it because of their low incomes. Hence the debt crisis. Debt crises will continue as long as this level of inequality continues. Even large scale defaults on loans (such as mortgage defaults) will only give temporary relief. The only way to fix the problem sustainably is to restore the bargaining power of wage earners, for example by strengthening collective bargaining rights.

    While this is currently only a model and needs to be extended to an open economy, there is good evidence for it. It adds to the credibility of the analyses and views of prominent economists such as Paul Krugman, Raghuram Rajan, Robert Reich and Robert Wade linking increasing debt, inequality and crises.

    We don’t have the data to do a similar analysis of New Zealand, but it should be considered. Our household debt situation is probably fuelled as much by plentiful supplies of international funds as lending by the wealthy local beneficiaries of our growing inequality. It may have been moderated by more generous transfers through the social welfare system than in the US. We addressed these issues in the CTU submission to the Savings Working Group – see http://union.org.nz/savings.

    If you are interested in the full technical paper from the IMF, which has more factual detail and the full theoretical model, see http://www.imf.org/external/pubs/ft/wp/2010/wp10268.pdf

    Regards

    Bill

    Dr Bill Rosenberg,
    Policy Director/Economist,
    New Zealand Council of Trade Unions, Te Kauae Kaimahi,
    178 Willis St,
    Education House, Level 7,
    PO Box 6645,
    Wellington 6141,
    New Zealand.
    Web site: union.org.nz
    [redacted]

    [lpent: don’t put phone numbers email addressees on the site. And put spaces in front of web addresses. Fixed both.]

Links to post

Recent Comments

Recent Posts

  • Twenty highlights of 2020
    As we welcome in the new year, our focus is on continuing to keep New Zealanders safe and moving forward with our economic recovery. There’s a lot to get on with, but before we say a final goodbye to 2020, here’s a quick look back at some of the milestones ...
    2 weeks ago

  • Cook Islanders to resume travel to New Zealand
    The Prime Minister of New Zealand Jacinda Ardern and the Prime Minister of the Cook Islands Mark Brown have announced passengers from the Cook Islands can resume quarantine-free travel into New Zealand from 21 January, enabling access to essential services such as health. “Following confirmation of the Cook Islands’ COVID ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Supporting communities and landowners to grow employment opportunities
    Jobs for Nature funding is being made available to conservation groups and landowners to employ staff and contractors in a move aimed at boosting local biodiversity-focused projects, Conservation Minister Kiritapu Allan has announced. It is estimated some 400-plus jobs will be created with employment opportunities in ecology, restoration, trapping, ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Border exception for some returning international tertiary students
    The Government has approved an exception class for 1000 international tertiary students, degree level and above, who began their study in New Zealand but were caught offshore when border restrictions began. The exception will allow students to return to New Zealand in stages from April 2021. “Our top priority continues ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Tiwai deal gives time for managed transition
    Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • New member for APEC Business Advisory Council
    Prime Minister Jacinda Ardern has appointed Anna Curzon to the APEC Business Advisory Council (ABAC). The leader of each APEC economy appoints three private sector representatives to ABAC. ABAC provides advice to leaders annually on business priorities. “ABAC helps ensure that APEC’s work programme is informed by business community perspectives ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Govt’s careful economic management recognised
    The Government’s prudent fiscal management and strong policy programme in the face of the COVID-19 global pandemic have been acknowledged by the credit rating agency Fitch. Fitch has today affirmed New Zealand’s local currency rating at AA+ with a stable outlook and foreign currency rating at AA with a positive ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Additional actions to keep COVID-19 out of NZ
    The Government is putting in place a suite of additional actions to protect New Zealand from COVID-19, including new emerging variants, COVID-19 Response Minister Chris Hipkins said today. “Given the high rates of infection in many countries and evidence of the global spread of more transmissible variants, it’s clear that ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • 19 projects will clean up and protect waterways
    $36 million of Government funding alongside councils and others for 19 projects Investment will clean up and protect waterways and create local jobs Boots on the ground expected in Q2 of 2021 Funding part of the Jobs for Nature policy package A package of 19 projects will help clean up ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand Government acknowledges 175th anniversary of Battle of Ruapekapeka
    The commemoration of the 175th anniversary of the Battle of Ruapekapeka represents an opportunity for all New Zealanders to reflect on the role these conflicts have had in creating our modern nation, says Associate Minister for Arts, Culture and Heritage Kiri Allan. “The Battle at Te Ruapekapeka Pā, which took ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Better care for babies with tongue-tie
    Babies born with tongue-tie will be assessed and treated consistently under new guidelines released by the Ministry of Health, Associate Minister of Health Dr Ayesha Verrall announced today. Around 5% to 10% of babies are born with a tongue-tie, or ankyloglossia, in New Zealand each year. At least half can ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Prisoner disorder event at Waikeria Prison over
    The prisoner disorder event at Waikeria Prison is over, with all remaining prisoners now safely and securely detained, Corrections Minister Kelvin Davis says. The majority of those involved in the event are members of the Mongols and Comancheros. Five of the men are deportees from Australia, with three subject to ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Pre-departure COVID-19 test for travellers from the UK and the US from 15 January
    Travellers from the United Kingdom or the United States bound for New Zealand will be required to get a negative test result for COVID-19 before departing, and work is underway to extend the requirement to other long haul flights to New Zealand, COVID-19 Response Minister Chris Hipkins confirmed today. “The new PCR test requirement, foreshadowed last ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • PM congratulates New Year Honour recipients
    Prime Minister Jacinda Ardern has added her warm congratulations to the New Zealanders recognised for their contributions to their communities and the country in the New Year 2021 Honours List. “The past year has been one that few of us could have imagined. In spite of all the things that ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • David Parker congratulates New Year 2021 Honours recipients
    Attorney-General and Minister for the Environment David Parker has congratulated two retired judges who have had their contributions to the country and their communities recognised in the New Year 2021 Honours list. The Hon Tony Randerson QC has been appointed a Companion of the New Zealand Order of Merit for ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New Year’s Honours highlights outstanding Pacific leadership through challenging year
    Minister for Pacific Peoples Aupito William Sio says the New Year’s Honours List 2021 highlights again the outstanding contribution made by Pacific people across Aotearoa. “We are acknowledging the work of 13 Pacific leaders in the New Year’s Honours, representing a number of sectors including health, education, community, sports, the ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Supporting seniors to embrace technology
    The Government’s investment in digital literacy training for seniors has led to more than 250 people participating so far, helping them stay connected. “COVID-19 has meant older New Zealanders are showing more interest in learning how to use technology like Zoom and Skype so they can to keep in touch ...
    BeehiveBy beehive.govt.nz
    2 weeks ago