Did This Straw Break the Finance Sector’s Back? T. Sabri Oncu

I will define the straw and start with quoting from my July 2017 H T Parekh Finance Column titled “Debts That  Cannot Be Paid Will Not Be” (Öncü 2017). With my June 2015 H T Parekh Finance Column article titled “When Will the Next Financial Crisis Start?” [Öncü 2015a] I initiated an investigation of the possibility of a new phase in the ongoing global financial crisis (GFC) that started in the summer of 2007. [This article was retitled on the Policy Research in Macroeconomics website as “What Straw Will Break the Finance Sector’s Back?” when it was republished three days…

Engineering a New Crisis to resolve an Old One C.P. Chandasekhar

News that the US economy grew at 3 per cent during the hurricane-blighted third quarter of 2017, close to the 3.1 per cent recorded in the previous quarter, has once more revived claims that the world economy has left the Great Recession behind. There is one reason to discount this claim. Back to back 3 per cent annualized rates of growth in consecutive quarters has been observed more than once since the 2008 crisis. In fact, as recently as the second and third quarters of 2014, rates of GDP growth in the US stood at 4.6 and 5.2 per cent…

Much more Climate Finance Now! Jomo Kwame Sundaram and Anis Chowdhury

Funding developing countries' climate change mitigation and adaption efforts was never going to be easy. But it has become more uncertain with President Trump's decision to leave the Paris Accord. As a candidate, he threatened not to fulfil the modest US pledge of US$3 billion towards the 2020 target of US$100 billion yearly for the Green Climate Fund (GCF). The GCF was formally established in December 2011 "to make a significant and ambitious contribution to the global efforts towards attaining the goals set by the international community to combat climate change". In the 2009 Copenhagen Accord, developed economies had promised…

Quantitative Easing for Wealth Redistribution Jomo Kwame Sundaram

Following the 2007-2008 global financial crisis and the Great Recession in its wake, the ‘new normal' in monetary policy has been abnormal. At the heart of the unconventional monetary policies adopted have been ‘asset purchase' or ‘quantitative easing' (QE) programmes. Ostensibly needed for economic revival, QE has redistributed wealth – regressively, in favour of the rich. As its failure to revive most economies becomes apparent, and opposition to growing inequality rises, QE may soon end, judging by recent announcements of some major central banks. Already, the US Federal Reserve and the Bank of England have been phasing out purchases of…

Growing Inequality: Cause and Consequence of Financial Crisis Mah-Hui Lim

Rising inequality is among the root causes of the recent global financial crisis; and quantitative easing, the pill that was supposed to be the cure, has not only been ineffective but also has produced unintended consequences of rising inequality. growing_inequality (Download the full text in PDF format) (Mah-Hui Lim was formerly a post-doctoral fellow at Duke University and Assistant Professor at Temple University in the US, and an international banker. He serves as a city councillor in Penang island, Malaysia.)  

Trapped in a Recession C.P. Chandrasekhar

When the recently held annual meetings of the IMF and the World Bank ended, the only news to report was that confusion and disagreement afflicts the leaders and institutions charged with jointly managing the international economy. The absence of certainty and agreement was specially visible with respect to one issue: whether governments should revert to using fiscal policy measures and not just monetary policy initiatives to revive a global economy poised to slip into another deep recession. Years of “quantitative easing’ or injection of liquidity into the system through bond purchases by the US Fed, and similar moves elsewhere in…

Goliath’s Nasty Ways: Chevron and the people of the Amazon Jayati Ghosh

The big multinational oil companies usually do an impressive Public Relations job. Advertisements and some laudatory media reports show how "green" and people-minded these companies are, how their technicians and professional employees are concerned with the rights of local communities and with bringing access to safe clean energy to everyone. The oil major Chevron is no exception to this. Its website declares that "The foundation of our business success and world-class performance is operational excellence, which we define as the systematic management of process safety, personal safety and health, environment, reliability, and efficiency. Safety is our highest priority." Further, Chevron…