Economy

All my life I've heard Latin America described as a failed society (or collection of failed societies) because of its grotesque maldistribution of wealth. Peasants in rags beg for food outside the high walls of opulent villas, and so on.

My colleague on Free Exchange has been expertly marshalling the pro-QE argumentsin his blog. At the risk of indulging in navel-gazing, I thought I should respond. The thrust of his case is that QE is an example of monetary policy, just like cutting interest rates. No one accuses the Fed of engaging in “currency wars” when it cuts the Fed funds rate.

People rightly want answers, and they are not getting them except from voices that tell tales that have some internal coherence—if you suspend disbelief.

The U.S. midterm elections register a level of anger, fear and disillusionment in the country like nothing I can recall in my lifetime. Since the Democrats are in power, they bear the brunt of the revulsion over our current socioeconomic and political situation.

The US Federal Reserve’s decision to pump an extra $600bn into the economy has galvanized emerging market central banks into preparing defensive measures and sparked criticism from leading global economies.

As mass consumption gives way to the wants of individuals, a historic transition in capitalism is unfolding.

In spite of Friday’s gross domestic product data showing no signs of spiralling prices – the US’s core personal consumption deflator was just 0.8 per cent – there are now so many pundits warning of the hyperinflationary consequences of quantitative easing and fiscal profligacy that even the most shocking predictions induce yawns. One author’s gimmick while visiting the Financial Times was to hand out trillion-dollar bills from Zimbabwe.

Sales are flat in developed countries. For Coke to keep growing, Africa is it

The Costs and Benefits of Government Intervention

The U.S. government's response to the financial crisis in the fall of 2008 created enormous value for banks and saved a few that were on the brink of bankruptcy

Indian billionaire Ravi Ruia flew to Africa every month for the past 18 months, buying coal mines in Mozambique, half an oil refinery in Kenya and a call center in South Africa for his Essar Group.