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Only rational expectations macroeconomics can explain self-fulfilling crises
01 Nov 2019 Leave a comment
in applied price theory, budget deficits, business cycles, currency unions, economic growth, economic history, economics of bureaucracy, economics of information, Euro crisis, fiscal policy, global financial crisis (GFC), great depression, great recession, macroeconomics, monetary economics, Public Choice Tags: Euroland, rational expectations, sovereign defaults
Labour costs across the European Union
23 Sep 2015 Leave a comment
in applied welfare economics, currency unions, Euro crisis, international economics, macroeconomics Tags: comparative advantage, EU, Euroland
A single labour market in Europe? Chart shows labour costs in some countries 10 times higher than in others http://t.co/HEzvsSoCPb—
paulkirby (@paul1kirby) September 14, 2015
The Left is back in power in Greece
21 Sep 2015 Leave a comment
in currency unions, Euro crisis, macroeconomics, Marxist economics Tags: Euroland, Greece, Leftover Left
Tsipiras remains Greece’s PM, following the country’s third national vote this year econ.st/1Wd3POq http://t.co/F3x08Gyrab—
The Economist (@ECONdailycharts) September 21, 2015
Unemployment rates across the OECD member countries
30 Jul 2015 Leave a comment
in business cycles, currency unions, economic growth, Euro crisis, job search and matching, labour economics, labour supply, macroeconomics, unemployment Tags: employment law, employment regulation, EU, Euro sclerosis, Euroland, Eurosclerosis, Japan, labour market regulation
European integration explained in one easy chart
25 Jul 2015 Leave a comment
in currency unions, Euro crisis, international economics, macroeconomics Tags: Common market, customs unions, economics of immigration, EU, Euro, Euroland, European free trade area, European Union, free trade agreements, free trade areas, open borders, preferential trading agreements
AMAZING chart on European integration. One to pin to your office wall. Nice job by @Nic_Koenig delorsinstitut.de/2015/wp-conten… http://t.co/zZbOA29mYP—
Maxime Sbaihi (@MxSba) July 24, 2015
Iceland went bankrupt in 2008
23 Jul 2015 Leave a comment
in currency unions, economic growth, Euro crisis, fiscal policy, macroeconomics Tags: Euroland, Eurosclerosis, Finland, Iceland, sovereign default, The Netherlands
Finland and Holland have grown less than Iceland since 2007. Iceland went bankrupt in 2008. washingtonpost.com/blogs/wonkblog… http://t.co/gBEbDUhgYS—
Matt O'Brien (@ObsoleteDogma) July 17, 2015
#ISDS is saving the planet from global warming!
22 Jul 2015 Leave a comment
in energy economics, environmental economics, environmentalism, global warming Tags: carbon emissions, Euroland, expressive voting, Germany, global warming, investor state dispute settlement, nuclear energy, tradeoffs
Greece’s possible currency outcomes, from today’s euro to the drachma
13 Jul 2015 Leave a comment
in currency unions, economic history, macroeconomics Tags: currency reforms, EU, Euroland, Greece, sovereign defaults
Greece’s possible currency outcomes, from today's euro to the drachma (and several in between) on.wsj.com/1ew3Yvs http://t.co/nEWtz84WTG—
Sudeep Reddy (@Reddy) July 05, 2015
A Schumpeterian explanation of the recent rejection of the centre-left in Europe
02 Jul 2015 Leave a comment
in political change, Public Choice Tags: EU, Euroland, European politics, expressive voting, Joseph Schumpeter, Leftover Left, rational ignorance, rational irrationality
Kiwiblog put me onto the story in the Guardian about how only one third of Europe’s population is governed by the centre-left and the left is lost all but one of the last 13 elections in Europe. The exception was Greece, which they may regret.
Austria, Croatia, the Czech Republic, France, Italy, Malta, Slovakia and Sweden are the only EU members that are on the centre-left. In 2011, only 14.5% of the 28 countries’ total population was led by the centre-left. In 2007, it was nearly 45%.
The reason for the shift to the right can be explained by Joseph Schumpeter’s theory of democracy. Schumpeter disputed the widely held view that democracy was a process by which the electorate identified the common good, and that politicians carried this out:
- The people’s ignorance and superficiality meant that they were manipulated by politicians who set the agenda.
- Although periodic votes legitimise governments and keep them accountable, their policy programmes are very much seen as their own and not that of the people, and the participatory role for individuals is limited.
Schumpeter’s theory of democratic participation is that voters have the ability to replace political leaders through periodic elections.
Citizens do have sufficient knowledge and sophistication to vote out leaders who are performing poorly or contrary to their wishes. The power of the electorate to turn elected officials out of office at the next election gives elected officials an incentive to adopt policies that do not outrage public opinion and administer the policies with some minimum honesty and competence.
Power rotates in the Schumpeterian sense. Governments were voted out when they disappointed voters with the replacement not necessarily having very different policies. Greece is the exception to this.
John Oliver’s 3-minute explanation of Greece’s crisis
30 Jun 2015 Leave a comment
in currency unions, Euro crisis, fiscal policy Tags: Euroland, Greece, sovereign defaults
Greece (61st) is ranked one above the Russia in the World Bank’s Doing Business Survey 2015
29 Jun 2015 Leave a comment
in economics of bureaucracy, economics of crime, economics of regulation, industrial organisation, labour economics, law and economics, property rights, Public Choice, rentseeking Tags: cost of doing business, Euroland, Greece, Russia, sovereign defaults, transitional economies, World Bank
Figure 1: Greek and Russian Doing Business sub-rankings, 2015
Source: World Bank Doing Business 2015.
As long as you’re not in a construction or export business, and don’t mind waiting for your electricity, it’s better to do business in Russia than in Greece! The main difference between Russia and Greece is its membership of the European Union makes it easy to export?
In Russia, it’s easier to start a business, register property and enforce contracts than it is in Greece!
Tom Sargent keynote address Emergency Economic Summit for Greece (1 June 2015)
26 Jun 2015 Leave a comment
in comparative institutional analysis, constitutional political economy, currency unions, Euro crisis, fiscal policy, macroeconomics, monetary economics Tags: EU, Euroland, Greece, sovereign borrowing, sovereign defaults, Thomas Sargent
Who are the members of Euroland?
17 Jun 2015 Leave a comment
in currency unions, Euro crisis, macroeconomics Tags: Euroland, European Union
Since today is Europe Day, a look at which countries have and haven't adopted the Euro brilliantmaps.com/eurozone2015/ http://t.co/N8tGhBe8eN—
Brilliant Maps (@BrilliantMaps) May 09, 2015
Maybe joining Euroland isn’t that bad after all
08 May 2015 Leave a comment
in business cycles, currency unions, development economics, Euro crisis, global financial crisis (GFC), growth miracles, international economics, macroeconomics, monetary economics Tags: Eastern Europe, Euroland, European Union, Eurosclerosis, transitional economies
#Dailychart: How "New Europe" has fared on its tenth birthday econ.st/1fwOg33 http://t.co/AvkCqHmzAf—
The Economist (@ECONdailycharts) May 01, 2014
Utopia, you are standing in it! 
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