Smart money

PUBLISHED : Monday, 09 January, 2012, 12:00am
UPDATED : Monday, 09 January, 2012, 12:00am


Some useful macroeconomic blogs:

In a world beset by economic and financial doubt, this site represents a truly alternative viewpoint. Warren Mosler covers economics from the comfortable island of St Croix with the view that 'there is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with'. Mosler's solutions are based on 'neo-chartalism', or 'Modern Monetary Theory'. He says governments shouldn't fear the markets, because they can borrow as much as they want. By freeing their minds from restrictive policies, original solutions may emerge.

Brad DeLong is a Keynesian professor at Berkeley who isn't as committed to one theory like Mosler. Rather he uses a portfolio of ideas to explain why American and European economies are mired in unemployment despite strong monetary policy. Experienced economy watchers will benefit from Delong's wider perspectives. Novices can learn about economic basics and history in other sections. The site's most useful aspect is the clear study of government monetary and fiscal policies without any bias towards any economic school.

Scott Sumner, a professor at Bentley University, advocates market monetarism. His view is that we have misdiagnosed the true nature of the US recession - it shouldn't be blamed on the banking crisis, but a failure of monetary policy. He explains how central banks could better utilise their tools to revive the economy. Sumner trades arguments with Nobel Prize winner Paul Krugman, a master blogger in his right, and raises fun facts from monetary history. Curious readers will enjoy the intellectual combat.