
8th December, 2008
My piece in today’s Guardian, The Credit Crisis Myth, was resoundingly rubbished in many of the comments. Reminds me of when my book, The Coming First World Debt Crisis came out in 2006… Then it was: Chicken Licken - The sky is falling!
Read the article (and comments)
7th November 2008
Yesterday’s dramatic Bank of England 1.5% rate cut was an extraordinary admission of analytical failure. The Monetary Policy Committee of orthodox economists (with Danny Blanchflower the honourable exception) is well behind the curve. While it is tiresome to beat one’s own drum, I am obliged to point out that on the 12th July I wrote a short piece for the Guardian beseeching the Bank of England not to “sacrifice the economy on the cross of inflation targeting”. Today’s numbers from the Insolvency Service reveal that more than 4,000 companies have been sacrificed. Company insolvencies have risen by 26.3% over a year ago, and by 10% over the last quarter. This represents the loss of a great deal of productive activity, and of thousands of jobs.
Read post »
The graph below - courtesy of the International Herald Tribune - does not look like a dagger - but a dagger is what it is when pointed at a vast bubble of credit. Unfortunately there are central banks like the Bank of England and the Bank of Hungary that have not blunted their daggers, or indeed are still sharpening the dagger.


24th October, 2008
The NS has published a short piece this week: “Economists simply would not accept that their model could fail“. An introductory sentence is not mine: “Who would have predicted..that prudent Gordon Brown (would) breach the EU cap on government spending?” Am writing to the NS to ask for a correction to be published.
Read post »
22nd October, 2008.
I am dictating this piece down the phone from Budapest in Hungary where I have just arrived to deliver a lecture to the Ybl Club. My hosts were in a state of shock on arrival because the central bank of Hungary has just raised interest rates from 8.5% to 11.5%…
Read post »
9th October, 2008.
Central banks’ obsession with inflation is stopping them from tackling a far more pressing threat.
Read more here…