“In more than 30 years of teaching introductory macroeconomics, says Alan Blinder of Princeton University, he has never seen interest as high as it was last year... the crisis has also highlighted flaws in the existing macroeconomics curriculum... Courses in many leading universities are already being amended... Discussion of the “liquidity trap,” in which standard easing of monetary policy may cease to have any effect, had fallen out of vogue in undergraduate courses but seems to be back with a vengeance. Asset-price bubbles are also gaining more prominence.”
excerpts from the article titled “Revise and Resubmit”
There is an argument in the popular media as well as articulated by the Federal Reserve Chief Mr. Bernanke that the current economic crisis is over. The attached article argues that the current crisis is far from over and there exist structural problems with contemporary capitalism which makes it more crisis prone.
The latest IIP data for the month of October has been released. The data shows that after many years the overall industrial growth in the country has turned negative. Is this the beginning of a prolonged recession in India? Pragoti Editorial team member Subhanil Chowdhury analyzes the latest data for Index of Industrial Production (IIP) ,released for the month of October 2008.
Some observers are of the view that the sharp fall in the month-on-month annual rate of industrial growth in August 2008 exaggerates the actual and likely slowdown in the growth. C. P. Chandrasekhar and Jayati Ghosh discuss why the broad trend suggested by the index may not be too far off the mark.
Courtesy: Hindu Business Line
While the threat of recession has forced governments to drop their neo-conservative bias against State ownership and markets that hollered at government intervention in the past have now applauded such action, the threat of recession has not receded.
C.P Chandrasekhar notes in People's Democracy.
As the United States braces itself for the onset of a recession, much of the blame for the current downturn is being attributed to the recent subprime mortgage crisis. While boom and bust cycles in real estate markets are nothing new, what distinguishes the current crisis is that the massive run-up in home prices was driven by the proliferation of new forms of securitized finance that permitted massive sums of loan capital to be pumped into the property markets.