Category Archives: austerity

Markets always overreact to changing expectations: this time was no different

Posted on June 27, 2013 by haroldchorneyeconomist

I have been away working on my research and publishing and nursing a very nasty summer cold these past few weeks . A lot has happened that needs to be noted. First let me pay tribute to the long and … Continue reading →

Posted in austerity, business cycles, classical economics, deficit hysteria, European debt crisis, J.M.Keynes, quantitative easing, unemployment | Tagged , , , | Leave a comment

U.S unemployment rises slightly to 7.6% Canada falls slightly to 7.1%

Posted on June 7, 2013 by haroldchorneyeconomist

The American economy created 175000 net new jobs in May as unemployment rose very slightly to 7.6%. The broad measure of unemployment U6 fell slightly to 13.8 % from 13.9% last month.In Canada employment rose by 95000 and the unemployment … Continue reading →

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European obsession with austerity and inefficient job search repeats error of the 1930s

Posted on May 31, 2013 by haroldchorneyeconomist

There was discussion in the financial press today and yesterday about the fact that the EU has extended the deadline by which they expect countries like France, Spain and Italy to meet the 3% deficit to GDP targets which the … Continue reading →

Posted in austerity, classical economics, deficit hysteria, European unemployment, France politics+economy, full employment, Greek sovereign debt crisis, quantitative easing, Spain, U.K. economy, Uncategorized, unemployment | Tagged , , | Leave a comment

The Owl of Minerva takes flight at dusk:The anti-Keynesian era is drawing to a close

Posted on May 2, 2013 by haroldchorneyeconomist

The Owl of Minerva takes flight at dusk: The anti-Keynesian era is drawing to a close By Harold R. Chorney, Professor of political economy, Concordia university, Montreal.( I originally submitted this to the New York Times as an op ed … Continue reading →

Posted in austerity, business cycles, deficit hysteria, deficits and debt, European debt crisis, European unemployment, fiscal policy, France politics+economy, full employment, Greek sovereign debt crisis, Italian debt crisis, J.M.Keynes, Keynesian multiplier, monetary policy, Uncategorized | Tagged , , | Leave a comment

Austerity backers in Europe in retreat ? Barroso calls for re-orientation to growth.

Posted on April 22, 2013 by haroldchorneyeconomist

The head of the European Commission José Manuel Barroso has called for Europe to downgrade its austerity policies and re-emphasize policies which stimulate growth. He argues in a speech today , according to The Wall Street Journal,that austerity no longer … Continue reading →

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The end of an era ? Margaret Thatcher passes away A controversial but also creative force in British politics is gone.

Posted on April 9, 2013 by haroldchorneyeconomist

Margaret Thatcher, an elemental force of great magnetism but also great negative consequences, has passed away. She enters history as an extraordinary politician and certainly one of the great figures on the Tory side of British politics. From my liberal … Continue reading →

Posted in austerity, Hayek, J.M.Keynes, Keynesian welfare state, U.K. economy | Tagged , , | Leave a comment

Unemployment in Europe averages 12 % as of February 2013

Posted on April 2, 2013 by haroldchorneyeconomist

The bitter fruits of austerity are on display in the latest unemployment report from Eurostat. Overall there are 26 million people out of work in Europe. unemployment averages 12 %. It is 10.8 % in France,7.7 % in the U.K., … Continue reading →

Posted in austerity, business cycles, deficit hysteria, European debt crisis, European unemployment, fiscal policy, France politics+economy, monetary policy, Spain, U.K. economy, Uncategorized, unemployment | Tagged , , | Leave a comment

Cypriot events send worrisome message to savers and bank customers throughout Europe.

Posted on April 1, 2013 by haroldchorneyeconomist

The dust is now settling on the wreckage of the Cypriot economy and its financial services sector. In a move that shocked many millions of people in Europe and elsewhere the European union , the ECB and the IMF imposed … Continue reading →

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Robert Mundell, Columbia University economist criticizes overvalued euro which promotes unemployment and urges QE

Posted on March 25, 2013 by haroldchorneyeconomist

Robert Mundell, a Nobel prize winning Canadian economist at Columbia University and a specialist on trade,exchange rates and currencies has wisely critiqued the European central bank for allowing an overvalued exchange rate on the euro which has harmed growth in … Continue reading →

Posted in austerity, balance of payments, business cycles, classical economics, European debt crisis, European unemployment, free trade and globalization, full employment, quantitative easing, unemployment | Tagged , , , | 4 Comments

A tale of two bankruptcies: Washington Mutual versus Laiki Bank

Posted on March 25, 2013 by haroldchorneyeconomist

According to Alan Blinder, a former vice chair of the Federal reserve and professor of Economics at Princeton and a Keynesian when Washington Mutual one of the largest banks in the U.S. with assets of $328 billion  went bankrupt in … Continue reading →

Posted in austerity, Cyprus banks, European financial stability fund, Greek sovereign debt crisis, Uncategorized | Tagged , , | Leave a comment