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G. R. Steele
3 February 2014
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The relative merits of directing monetary policy by following set rules or by the use of discretion has engaged economists since first discussed by Henry Simons in a seminal paper published...
G. R. Steele
3 January 2014
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The public at large takes a very dim view of banking. When the pre-fix ‘shadow’ is added, matters only get worse. Although ‘shadow’ refers to credit intermediation occurring...
G. R. Steele
4 December 2013
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Keynesian demand management endures with the regular adjustment of short-term interest rates and the lowering of long-term interest rates, once short-term interest rates have been driven to their...
G. R. Steele
25 March 2013
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In March 2009 an EU directive increased the value of the protection afforded by a deposit guarantee scheme (DGS) to a uniform ceiling of €100,000. Events involving Cyprus have undermined the...
G. R. Steele
4 March 2013
2 comments

Keynesian economists have an enduring disposition to spend their way out of trouble. This is so even when overspending has caused the trouble. Gone are the days when expenditure and taxation were...
G. R. Steele
14 January 2013
2 comments

A review of Keynes Hayek: The Clash That Defined Modern Economics by Nicholas Wapshott. As the Luftwaffe targeted culturally-rich cities in 1942, two economists took their turn in fire-watching...
G. R. Steele
30 October 2012
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One estimate (from the Olympic Delivery Authority) for the overall ‘Public Sector Funding Package’ for the London 2012 Olympic Games, placed it in the region of £10...
G. R. Steele
18 September 2012
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  President Obama’s 2009 stimulus has been a disappointment: the Keynesian response is that it failed because it was not big enough. So, now we have Ben Bernanke’s rescue act:...
G. R. Steele
10 August 2012
1 comment

If ever you see a €100 banknote in the gutter, don’t bother to stop. If it were real, someone would already have picked it up. The same is true of a ruse to save the euro. Writing in the...
G. R. Steele
1 June 2012
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Martin Wolf recently committed the Financial Times to a $71.88 lunch-time interview with Paul Krugman. Whatever the quality of the meal, the interview was poor value. Three questions were covered:...
G. R. Steele
23 November 2011
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Mainstream macroeconomics presents monetary and fiscal interventions as independent policy options, and this spills over to institutional structures. In the UK, for example, the Bank of England and...
G. R. Steele
17 November 2011
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The European Central Bank (ECB) sits at the centre of a clearing system (‘TARGET2’) for national central banks (NCBs) within the eurozone. The pattern that has built up, particularly...
G. R. Steele
24 August 2011
11 comments

Lord Robert Skidelsky is unlikely to have understood the anecdote in his opening remarks in the LSE Hayek/Keynes debate. He related that, after addressing an audience of Cambridge economists in...
G. R. Steele
18 August 2011
6 comments

Keynes gave little thought to generalities. He acknowledged that his prescriptions were limited to the special circumstances of the 1930s. With Bolshevism in mind, any fiscal deficit spending was...
G. R. Steele
22 June 2011
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The condemnation of benefit fraud and tax avoidance obscures a difference. Benefit cheats make fraudulent claims upon the earnings of others. Tax avoiders use legitimate means to retain their own...
G. R. Steele
16 June 2011
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State infrastructure projects may be funded by private capital through PFI (private finance initiative) contracts.This week, BBC Radio’s File on Four put great effort into addressing the...
G. R. Steele
12 June 2011
4 comments

The decision to abandon nuclear power will increase Germany’s short-term dependency upon fossil fuel as it engages with long-term aspirations for politically correct (PC) alternatives. In...
G. R. Steele
18 April 2011
2 comments

The eurozone came with fine aspirations: according to article 127 in the consolidated version of the Treaty on the Functioning of the European Union ‘the primary objective of the European...
G. R. Steele
1 April 2011
1 comment

Ireland is not stupid. When credit is offered, it chooses the lowest rate. Ireland’s ‘bailout’ from the European System of Central Banks (ESCB - the eurosystem) is larger (€...
G. R. Steele
14 March 2011
2 comments

Inflation is the process whereby ‘things’ – balloons, tyres, opinions, etc. – wbecome enlarged. Deflation is the reverse process. In economics, inflation generally refers to...