At long last, economists appreciate that private debt was the catalyst for the crisis
This month saw the tenth anniversary of the collapse of Lehman Brothers, a collapse which precipitated one of the only two global financial crises of the past 150 years. The late 2000s and early 1930s were the only periods in time when capitalism itself has trembled on the edge of the precipice. It was in […]
Why are markets so volatile?
Mainstream economic thinking has considerable difficulty in explaining the massive degree of volatility of financial markets over the past few months.Both shares and bonds exhibit large fluctuations on an almost daily basis. The problem is particularly acute for the concept which is fundamental to a great deal of modern macroeconomics, based on the so-called ‘representative […]