Economics @ ITT

The Banking Revolution that Would Wipe Out Britain’s Debts

Posted in economics by ittecon on June 11, 2013

Banking reform has been back in the headlines over the past week, with calls from a parliamentary committee for consideration to be given to more radical options – including the break-up of the Royal Bank of Scotland – and a scathing attack by MPs on Dame Clara Furse’s fitness to serve on the Bank of England’s new financial stability committee.

via The banking revolution that would wipe out Britains debts – Telegraph.

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Does High Public Debt Stifle Economic Growth?

Posted in economics, macroeconomics by ittecon on April 18, 2013

In capitals, both political and economic, across Europe, across North America, really, across the world, theres been an assumption based on a study done by two eminent Harvard professors, economists Carmen Reinhart and Kenneth Rogoff, which presented in 2010 their conclusions that 90 percent debt-to-GDP ratio means a collapse in growth. Its that conclusion that leads to policies like austerity, which says even in times of recession, debts more dangerous than high unemployment.

Now joining us to talk about their conclusions, because theyve reached quite different conclusions about the same data, is, from the PERI institute, first of all, Thomas Herndon. Hes a doctoral student in economics at the University of Massachusetts Amherst. His research includes political economy and finance. And he coauthored a paper: Does High Public Debt Consistently Stifle Economic Growth?, which is a critique of Reinhart and Rogoff.

via Does High Public Debt Stifle Economic Growth?.

9 Things You Didn’t Know about the History of Debt

Posted in economics by ittecon on August 2, 2011

Debt seems to be everywhere in the news nowadays: debt ceilings, sovereign debt crises, credit crunches, senate battles over debt protection agencies, subprime mortgages, the creeping feeling that the United States has somehow hocked itself to China. It might cause one to wonder: how did all this happen? How did politics suddenly become all about who owes who how much money?

via David Graeber: 9 Things You Didnt Know About The History Of Debt PHOTOS.