04 December 2010

Clarifying the US tax cut debate

An excellent and telling graph at the economix blog showing the evolution of pre-tax real income for different income groups. What is the outcome of these trends? Well, in 1980 the ratio of the top 0.01 to the median was 62, by 2009 it had become 184.

01 December 2010

CITI's Chief Economist Willem Buiter on Sovereign Debt Crisis

An interesting analysis by Citi's Chief economist Willem Buiter. I think one of the strongest point is that "Irish crisis highlighted that the distinction between public and private balance sheets can become blurred in a crisis". But then this highlights the need for public authorities to regulate private banks's exposure to debt to unsure that it can covered by the state up in the context of a crisis. This in turn raises the question of how we define property rights in capitalist economies and whether this is consistent with how we deal with financial crisis.