A pertinent reminder that financial crises tend to share similar features, yet we keep on repeating the mistakes of the past A seemingly endless number of post-crisis studies have been released in recent years. These have ranged in format, from accessible feature films (J.C. Chandor’s Margin Call) to documentaries (Michael Moore’s Capitalism: A Love Story) to a heap of books, some academic (This Time Is Different by Carmen Reinhart and Kenneth Rogoff) and others targeted at a slightly wider audience (Andrew Ross Sorkin’s Too Big to Fail, Michael Lewis’s The Big Short on which the recent film of the same … Continue reading Film review: Boom Bust Boom
Like most hesitant optimists, I can’t shake the feeling that much of the West is slowly recovering economically. I tell myself that we hit rock bottom sometime after the 2007 crash but now, nine years on, things are finally looking up. “We recovered from the worst financial crisis in generations”, President Obama said in his final state of the union address, implying (1) that we have indeed recovered and (2) we don’t have to worry about any more crises for a while; it was a once-in-a-generation event. Hence my surprise as I opened my browser recently and came across an … Continue reading There’s no good reason for another recession, but nor does there need to be
By Victoria Collins “We’re not in 2008, we’re not in 2008, we’re not in…” – The title of an email I received from the French financial paper, Les Echos, Thursday afternoon. The adjoining article is about the bearish plunging of the French market which fell 4,05% again on Thursday, having lost 15% since the beginning of the year and 25% since its peak in April 2015. The mantra-like title of the email perfectly sums up the positive attitude we’re trying to talk ourselves into, while being reminded of our not so distant past. Things have changed though right? There’s been … Continue reading “Put your hands up! This is the financial markets” Crisis or not ?
By Rachel de Sá Note: Originally posted on the Foreign and Commonwealth Office (FCO) of The UK’s internal blog “Economics matter”. Brazil’s downgrade “Trust takes years to build, seconds to break, and a lifetime to recover” so the saying goes. This was … Continue reading Brazil’s Downgrade
By Pedro Sousa As we examine the state of the global economy, information suggests we are in an era of very limited growth. Larry Summers might be right in describing this as “secular stagnation“. Does this mean we are facing economic crisis in 2016? Maybe not, but the global economy is vulnerable. Nowadays, most OECD governments don’t have the financial muscle to kickstart their economies towards higher growth. Plus, as we have seen within the EU, there is a lack of political union to agree to put more money into the economy. Lack of economic governance is hindering the potential … Continue reading Crisis or not?
By Luisa Porritt Global growth disappointed last year, and market sentiment is being driven by fears it will remain weak or even weaken through 2016. The factors worrying stock market investors are hardly new. For years there has been talk of China suffering from a hard landing, and its transition from a manufacturing-based economy to one that is services oriented is now becoming apparent. Markets are figuring out how to price that shift in and to what extent this will continue to impact global demand. Part of the uncertainty will be around timing: how long will this process take? What … Continue reading Crisis or not?
One of the super powers that economists believe they have is the ability to predict the future. The question whether there will be a Grexit or not is therefore a hot topic at the moment. Let us begin by stating … Continue reading #PolicyBlog Forget Grexit*!?
Nearly six years on from the greatest economic crisis since the Great Depression, the financial sector still isn’t off the hook. Yes, regulatory reform has been undertaken, from Dodd Frank to Basel III, but, for many, finance remains too big … Continue reading Can too much finance kill growth?