Archive for May, 2015

Boom and bust.

May 8, 2015

Ideally a country’s economy should have the household sector as net savers and the corporate sector as net borrowers, with the government budget nearly balanced and net exports near zero. “Sectoral balances”, Inflation, interest, money supply: Currencies, May 2015.

The debate about economic austerity involves value judgments and trade-offs as well as economic principles, and there is uncertainty about the economic parameters. “Alternative targets”, in Inflation, interest, money supply: Targets, May 2013.

A k-wave downturn, driven by demographic change, may be a factor in the global financial crisis. Other factors are Chinese exports, American mortgage law, and financial deregulation. Back in the downwave, 1 January 2012.

Alternative explanations for economic long waves include demography or technological innovation, as well as the debt-deflation credit-cycle theory favoured by some post-Keynesian economists. “Alternative targets”, in Inflation, interest, money supply: Targets, November 2013.

Land tax, better management of protectionism, and better understanding of demography may be the best strategies for reducing economic instability. The search for a stable economy, March 2011.

The tax rate on the capital value of land should be kept within the same range as interest rates, so that no more than half of the annual value is collected as tax. Land Tax, Summer 2010.