Author Archives: Devin Smith

S&P threatened to downgrade Brazil to junk

By Felipe Rezende
Hobart and William Smith Colleges

S&P has issued a negative outlook regarding Brazilian sovereign debt. The S&P’s announcement stated that “Over the coming year, failure to advance with (on- and off-budget) fiscal and other policy adjustments could result in a greater-than-expected erosion of Brazil’s financial profile and further erosion of confidence and growth prospects, which could lead to a downgrade. The ratings could stabilize if Brazil’s political certainties and conditions for consistent policy execution–across branches of government to staunch fiscal deterioration–improved. It is our view that these improvements would support a quicker turnaround and could help Brazil exit from the current recession, facilitating improved fiscal out-turn and provide more room to maneuver in the face of economic shocks consistent with a low-investment-grade rating.”

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Ahead of their time?

Julie Verhage and Alex Balogh have published a piece over at Bloomberg about 9 people who saw the Greek Crisis many years before everyone else did. Several names you will recognize from NEP. Three are from UMKC plus Warren Mosler. They warned about the euro system and crises like Greece. You can read the article here.

 

 

It Simply Cannot Work

Pavlina Tcherneva discusses Greece’s Bailout with Richard Aldous on American Interest. You can listen here. She describes a deal that seems to contain more austerity than was initially proposed, and calls some of its economic incentives perverse. She discusses why the economic situation in Greece today is in some ways worse than was America’s Great Depression, and compares the decision to bail out Greece to Ireland’s austerity experience.

NEP’s Pavlina Tchernerva on RT discussing Greece

Pavlina appears on RT’s Boom Bust segment discussing Greece and austerity. She appears starting at 18 minutes.

MINDS Conference in Sao Paulo, Brazil

Rio de Janeiro- RJ. On July 24, the Multidisciplinary Institute for Development and Strategies (MINDS) will gather top policymakers, economists, and analysts at the FORD-MINDS Conference on Banking, Financial Instability, and Financial Governance in Brazil to discuss the structure of Brazil’s financial system to ensure stability for a growing and equitable economy. The conference, is being organized by MINDS with support from the Ford Foundation, and will take place on Friday, July 24, at the Fundação Getulio Vargas (FGV/EESP), Rua Itapeva 474, in São Paulo. Conference details are below.

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David Leonhardt Strikes Again

By June Carbone
Robina Chair of Law, Science and Technology
University of Minnesota Law School

David Leonhardt strikes again. As he now seems to do with some regularity, he takes a complex body of work and reduces it to a soundbite, eliminating the complexity and uncertainty that underlies the research.   His soundbite this time links two parent families to upward mobility, and notes that two different dynamics produce two parent families: high income and religion. He then replicates maps that purport to show these linkages.

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FUNDAMENTALS: Monetary Policy, Interet-Rate Targeting and the Corridor

The latest in a series of class project videos from Eric Tymoigne’s upper division Modern Money Theory class at Lewis and Clark College. Over the next several days, we will be posting  select videos created by his most recent class. Eric has created a YouTube channel to be the home of MMT videos created by L&C students. You can check it out here.

FUNDAMENTALS: Monetary Instruments, Principles and Logic of Acceptance

The latest in a series of class project videos from Eric Tymoigne’s upper division Modern Money Theory class at Lewis and Clark College. Over the next several days, we will be posting  select videos created by his most recent class. Eric has created a YouTube channel to be the home of MMT videos created by L&C students. You can check it out here.

Fundamentals: Automatic Stabilizers and “Clinton’s Surplus”

The latest in a series of class project videos from Eric Tymoigne’s upper division Modern Money Theory class at Lewis and Clark College. Over the next several days, we will be posting  select videos created by his most recent class. Eric has created a YouTube channel to be the home of MMT videos created by L&C students. You can check it out here.

US Treasuries auction: method and implications

The latest in a series of class project videos from Eric Tymoigne’s upper division Modern Money Theory class at Lewis and Clark College. Over the next several days, we will be posting  select videos created by his most recent class. Eric has created a YouTube channel to be the home of MMT videos created by L&C students. You can check it out here.