© 2019 by Henry Thornton. 

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March 28, 2020

USA-China relationship far more hostile.

USA allies (including Australia) less trusted by China, less trade.

Vast government spending everywhere.  Unless Jonson plan (See last week's blog) is adopted, counties will have massive, unmanageable debt burdens.

USA will adopt a national health system with national coverage, funded by richest Americans.

Send comments to: Henry.Thornton@HenryThornton.com

Trade will be less free - most, pos...

March 21, 2020

The Morrison government is rightly concerned about the cost of saving the Australian economy.  When asked if he would be going to save companies that were in trouble, the Prime minister seemed not especially interested.  He is no doubt totting up the cost of the many promises he has, rightly in my view, already made to Australian citizens.  I also applaud his bold measures to 'flatten the curve of infection', closing our borde...

March 17, 2020

Infection, recession, remission

It has already been a bugger of a year, and we are still in the early autumn season. The VIRUS is decimating Italy and spreading quickly.  President Trump looked rattled on TV this morning, while his Veep, Mr Pence, stood behind him and tried to scare him with very angry eyes.  The Veep was put in charge by the Pres, who now he knows it is serious has apparently put himself in charge again.

B...

March 14, 2020

It has already been a bugger of a year, and we are still in the early autumn season. The VIRUS is decimating Italy and spreading quickly.  President Trump looked rattled on TV this morning, while his Veep, Mr Pence, stood behind him and tried to scare him with very angry eyes.  The Veep was put in charge by the Pres, who now he knows it is serious has apparently put himself in charge again.

But who knows just how bad the w...

March 10, 2020

The world is waking up that recession is on the way.  Ever since the Global crisis economists have been baffled by low inflation and slow GDP growth.  To my mind, this combination is due to the big scare of the global crisis, fears of workers worried about losing their jobs and the inability of leaders to convince people that recovery is on the way.' Low Animal spirits for workers' is a relevant phrase.

Major countries are...

February 15, 2020

Lord Mervyn King is a former governor of the Bank of England, now a member of the House of Lords and an author.  His book, called The End of Alchemy. Money, Banking and the Future of the Global Economy, is important and radical in its conclusions. I have written about the general material, but here I report his views on promoting productivity. There are three general suggestions.

 Productivity is 'barely noticable' since the gl...

January 18, 2020

Increasing numbers of economists and journalists are questioning the RBA’s arguably nutty rate cuts.  I am reminded of a discussion in the RBA’s Executive Committee many years ago when the boss got down to tin tacks. ‘I’ve read the act carefully. I can’t be sacked unless I am deemed to be mad -    (thoughtful pause and wicked look) …And how would they know!’  It was one of the Boss’s better jokes, perhaps his only joke....

January 8, 2020

This chapter addresses one of the most difficult issues in Macroeconomics, how to increase useful economic growth. While fiscal and monetary policies can derail growth if handled badly, new ideas applied by real businesses are the main source of increased economic growth.  Different writers adopt different approaches, and in this chapter we feature three such approaches as well as a hymn of praise to a government agency.

*...

January 8, 2020

This is a revised version of a paper published initially in an article in a German journal called Kredit und Kapital, 1976 following the 1975 Konstanz Conference. In 1999 it was republished in Laidler, David (Ed), The Foundations of Monetary Economics, Volume II, An Elgar Reference Collection, 1999.  Footnotes and diagrams have been omitted and minor changes made solely to improve the flow.

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January 8, 2020

The highly professional and detailed monthly central bank reports are designed to demonstrate that no stone has been left unturned. However, there is at least one apparently small stone that demonstrates that there is a large rock left unturned. The apparent small stone is this: ‘Members noted that the ongoing subdued growth in wages implied that there continued to be spare capacity in the labour market.’ 

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