Over at Grasping Reality: David Glasner: Weekend Reading: Ludwig von Mises’s Unwitting Affirmation of the Hawtrey-Cassel Explanation of the Great Depression

Over at Grasping Reality: David Glasner: Weekend Reading: Ludwig von Mises’s Unwitting Affirmation of the Hawtrey-Cassel Explanation of the Great Depression: "The parallels with the antinomies of the thought of the Ludwig von Mises of today--John Taylor--are, I think, rather striking: David Glasner: "In looking up some sources for my previous post on the gold-exchange standard... ...I checked, as I like to do from time to time, my old copy of The Theory of Money and Credit by Ludwig von Mises. Mises published The Theory... More >

Over at Grasping Reality: Steve Randy Waldman: Weekend Reading: Greece

Over at Grasping RealitySteve Randy Waldman: Weekend Reading: Greece: "I’ll end this ramble with... ...a discussion of a fashionable view that in fact, the Greece crisis is not about the money at all, it is merely about creditors wresting political control from the concededly fucked up Greek state in order to make reforms in the long term interest of the Greek public. Anyone familiar with corporate finance ought to be immediately skeptical of this claim. A state cannot be liquidated. In bankruptcy terms, it must... More >

Over at Grasping Reality: Arthur Goldhammer: Weekend Reading: The Old Continent Creaks

Over at Grasping RealityArthur Goldhammer: Weekend Reading: The Old Continent Creaks: "Austerity and the failures of the technocratic elite have created the current populist backlash. France’s experience is instructive—and, possibly, ominous: What’s the matter with Europe? Wherever one looks these days, there are signs of deep trouble. Economic growth has stagnated. Deflation threatens. Unemployment is rampant in many member states of the European Union. Support for the former mainstream parties of the center-right and center-left is waning. Populist parties of the far right and far... More >

Must-Read: Thomas Piketty: Germany Has Never Repaid

Thomas Piketty: Germany Has Never Repaid: "What struck me while I was writing is that Germany... ...is really the single best example of a country that, throughout its history, has never repaid its external debt.... However, it has frequently made other nations pay up.... The history of public debt is full of irony. It rarely follows our ideas of order and justice.... When I hear the Germans say that they maintain a very moral stance about debt and strongly believe that debts must be repaid,... More >

Things to Read at Nighttime on July 4, 2015

Must- and Should-Reads: Must-Read: Simon Wren-Lewis: The Ideologues of the Eurozone Paul de Grauwe: "Accepting that the (restructured) Greek debt is sustainable opens the door to both a softening of the austerity programme and to liquidity support of the Greek banking sector..." Duncan Wheldon: "Syriza has transformed from 'end austerity' to 'implement austerity in a left wing redistributionary way' to 'slightly tweak existing austerity'. That's quite a journey in a matter of weeks..." Might Like to Be Aware of: Duncan Black: "Policy positions of Republicans... More >

Department of “HUH!? WTF!?!?”: Greek Crisis Troika-Defending Ideologues Edition

Angel Ubide writes: @mark_dow Good points.Sadly we'll never know if pre-Syriza growth sustainable. Bberg consensus thought so cc:@delong pic.twitter.com/QpQ1m4vcwN— Angel Ubide (@AngelUbide) July 4, 2015 Ummmm... "Pre-Syriza growth" would return Greek GDP to its 1975-1999 trend... never. "Pre-Syriza growth" was at a pace that would not return Greek real GDP to the 2007 level of the 1975-1999 trend (if you think that was Greece's "real" potential output in 2007) until... 2023. "Pre-Syriza growth" was at a pace that would not return Greek real GDP to... More >

Must-Read: Simon Wren-Lewis: The Ideologues of the Eurozone

Must-Read: Simon Wren-Lewis, who is very smart and has followed the Eurozone crisis much more closely than I have, seems to have joined the Ancient, Hermetic, and Occult Order of the Shrill: "Ph'nglui mglw'nafh Euro R'lyeh wgah'nagl fhtagn!". We wish him luck with his new appointment at Miskatonic University in picturesque Arkham, Massachusetts. And we are seriously considering, after reading him, whether the Euro project needs to blown up--indeed, whether the fundamental flaw was in U.S. occupation authorities allowing the formation of the Bundesrepublik, because... More >

Things to Read on the Afternoon of July 3, 2015

Must- and Should-Reads: James Galbraith: Greece: Only the 'No' Can Save the Euro: As Greece prepares for a referendum on its creditors' demands for austerity, the future of Europe hangs in the balance Cardiff Garcia and Diane Coyle: Camp Alphaville videos: Is GDP losing its relevance? Simon Wren-Lewis: The Greek people have paid for their governments’ mistakes – and for the errors of the Troika Joseph Cotterill: "It’s a Greek debt sustainability analysis by IMF staff... the frankest effort... so far to acknowledge the straits... More >

Must-Read: Paul Krugman: Europe’s Many Economic Disasters

Must-Read: Paul Krugman: Europe’s Many Economic Disasters: "It’s depressing thinking about Greece... ...So let’s talk about something else... Finland, which couldn’t be more different from that corrupt, irresponsible country to the south... a model European citizen; it has honest government, sound finances and a solid credit rating, which lets it borrow money at incredibly low interest rates. It’s also in the eighth year of a slump that has cut real gross domestic product per capita by 10 percent and shows no sign of ending.... If... More >