IMF Program in Turkey Erinc Yeldan

The Turkish crisis, which came in the aftermath of an exchange rate-based disinflation attempt, comes as no surprise to anyone who is somewhat-informed about the international literature on country experiences of macroeconomic stabilization. In fact, the observed growth-crisis path of the Turkish economy is well in line with the main empirical regularities associated with exchange rate-based disinflation. turkish_crisis (Download the full text in PDF format)

Post-Crisis Korea James Crotty & Kang-Kook Lee

This paper evaluates the neoliberal economic restructuring process implemented in Korea following the 1997 Asian financial crisis. A detailed analysis of the macro economy, labor markets, financial markets, and nonfinancial firms in Korea in the past three and one-half years shows that neoliberal restructuring has created a vicious cycle in which a perpetually weak financial sector fails to provide the capital needed for real sector growth, investment and financial robustness, while real sector financial fragility continuously weakens financial firms. post_crisis_korea (Download the full text in PDF format)

Excerpts from Argentine President Rodriguez Saa’s Inaugural Speech to Congress Translated by Cynthia Rush

Today, we begin the transformation of our beloved country; starting today, nothing will be the same...we are perfectly conscious that, today, a new republic has been born.' Argentina's new interim President, a very confident Adolfo Rodriguez Saa, spoke these words to the national Congress today, after having been sworn in, and outlined the crucial policy areas to be dealt with as immediate priorities. He acknowledged that the demonstrations which led to the demise of the de la Rua government had a good and bad side. The bad side was the "vandalism, irrational lootings, and absolutely unnecessary deaths"; the good side…

An Alternative Policy Framework for India Jayati Ghosh & C.P. Chandrasekhar

The overarching implication of the spate of financial crises that have ravaged Asia, Russia and Latin America is of course that the threat of deflation, driven by a financial crisis is real. In fact, once integration with globalised finance proceeds beyond a point, the state of a country, as reflected by its GDP growth or inflation rate, or even the size of its foreign exchange reserves, need not be adequate to predict an imminent crisis. East Asian economies had performed very differently in the period immediately preceding the crisis, and Brazil despite "qualifying" for a $42 billion IMF package, could…

How the IMF Messed Up Argentina Mark Weisbrot

Argentina's implosion has the fingerprints of the International Monetary Fund all over it. The first and overwhelmingly most important cause of the country's economic troubles was the government's decision to maintain its fixed rate of exchange: one peso for one U.S. dollar. Adopted in 1991, this policy worked for a while. But during the past few years the dollar has been overvalued, which made the peso overvalued as well. Contrary to popular belief, a "strong" currency is not like a strong body. It is very easy to have too much of a good thing. An overvalued currency makes exports too…

The Riddle of Putin Boris Kagarlitsky

There is evidently some kind of natural law at work: if the business press and the leaders of the financial world name some country or other as a success story, then this is precisely the country where you can expect things to go badly wrong. Not long ago the newspapers were full of rapturous accounts of the Argentinian economic miracle. We were urged to study and reproduce the "Argentinian model". Now Argentina is on the verge of bankruptcy, unemployment has become a national catastrophe, and the population no longer believes anyone. In the recent parliamentary elections, voters crossed out all…

Jubilee South Statement from Argentina

Defend Life The explosion of anger and hunger that has shaken our country is a long expected response from the depths of the degradation and betrayal that the people have been suffering. We join in that mobilization and share the pain, the anguish, and the indignation, in the face of so much unjustifiable repression and death. Dialogue 2000 demands the immediate halting of police repression and the repeal of the illegal state of siege. We call for the liberation and dropping of charges against all those detained for their participation in acts of social protest. We reject all forms of…

Momentum Returns to Movements against Corporate Globalisations Patrick Bond

I was glad to see Mokhiber/Weissman writing for ZNet last week on the durability of the anti-neoliberal movement. Here in Johannesburg, September 11 came and went, with linkages made between the Left peace movement's urgent agenda--anti-war demonstrations against US consulates in several South African cities--and the broader problem of imperialism's new form. I don't call it 'Empire,' as do some trendy intellectual friends, but I do recognise that the imperialist project is about more than a superpower bully acting on homegrown corporate interests. Imperialism today entails the penetration of neoliberal-capitalist ideology everywhere, as part and parcel of expanding the material…

The New Economy Mark Weisbrot and Dean Baker

In economic history, great myths are often made and sustained not so much by the difficulty of the subject matter, but by the failure of the discussants to look at the readily available data. America's longest business cycle expansion, which has now been officially certified as running from March 1991 to March 2001, is a case in point. In the folklore of the business press, a widely held explanation has already congealed for the upswing that led optimists to proclaim the emergence of a "new economy." The now conventional wisdom flows as follows: together with Congress, the Clinton Administration got…