Fiscal policy

Business Spectator

Britain’s ‘bold’ debt detractors

28/10/2010
The problem with Keynesians like Krugman and Stiglitz is that they are theoretically committed to balanced budgets, but only in the long run. But as no other than Keynes taught us, in the long run we are all dead. In the meantime, his disciples will never tire to explain why the right time to cut spending is never.

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Business Spectator

It’s time Henry had an umpire

22/07/2010
Opposition politicians are acutely aware of government’s ability to fiddle the figures to their desire. No shadow treasurer would be worth his salt if he did not complain about the dodgy nature of official forecasts. It is standard practice in Australia and elsewhere. But at least in Britain this could change now, and I am happy to say that I played a minor role in it.

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Business Spectator

No more hope or glory for Britain

11/03/2010
The stakes for Britain could hardly be higher. A return to the pre-crisis times of ‘Cool Britannia’, let alone Elgar’s Land of Hope and Glory is nowhere in sight. And instead of only printing Adam Smith’s portrait on their bank notes, British policy-makers should rather have read the great master.

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Business Spectator

Europe’s slow, painful death

17/02/2010
There is something comical about current talk about a potential Greek bankruptcy. No, the state of Greece’s public finances is certainly no laughing matter. But it is funny how politicians and financial markets are getting excited about this as if it were news.

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Speeches

Trans-Atlantic Fiscal Follies

13/10/2009
There are good reasons to remain cautious about Europe’s economic future. While it is true that things have somewhat stabilised after the tumultuous events of the last 12 months, we should not forget that there are some difficult challenges ahead. For Europe, the financial crisis may be over, but a new crisis is just about to begin.

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Uncategorised

Big government not so smart

26/05/2009
Over the past 15 years, Australia enjoyed the benefits of having a comparatively small government, healthy public finances, and strong economic growth. Swan’s budget signifies a departure from all of this. The Treasurer is leading us towards big government, permanent deficits, high debt, and slow growth. As it turns out, this is the very opposite of smart government.

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The Australian

It’s all down to the market

02/05/2009
In an email debate, David Hetherington and Oliver Hartwich discuss the coming budget, whether the Government’s stimulus package is wise and sustainable, and what Treasurer Wayne Swan should drink on budget night.

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Business Spectator

Still no life on Mars

23/02/2009
In Germany, but not only there, the economic ideas of the 1970s are celebrating a revival. But why would anyone want to retry the old recipes for more regulation and fiscal stimulus when they so spectacularly failed back then? It may well turn out that watching Life on Mars is a better way to indulge in 1970s nostalgia.

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