Since the Eurozone descended into despair in the aftermath of the Global Financial Crisis, Germany has awarded itself the position of chief economic lecturer.
David Graeber recently wrote an article in which he appears to make two claims arising from a recent quarterly report by the Bank of England that we believe are wrong. The first is that the report “throws the theoretical basis for austerity out the window”. The second is that money functioning as an IOU is an incredible and interesting recent discovery.
Even wonder what happens when a city goes bankrupt? Does a form of government even control the city anymore? Other questions such as who provides the public services or do the residents still pay tax also come to mind. Since the city of Detroit filed for Chapter 9 bankruptcy protection on the 18th of July 2013 at an estimated $18 billion worth of debt, I guess it is worth talking about it how it could pan out.
As students from Monash and Melbourne converged on the heart of Clayton campus for the inaugural ESSA Monash versus Melbourne Economics debate, the tension crackling in the air was palpable. For the Melbourne team, losing to the new kids on the block would be an irrevocable stain on their self-perception. For the Monash team, the desire to reign supreme on their turf was a powerful driving force. The topic ‘The Eurozone Project is a Failure’ provided ample scope for intellectual sparring.
Hand picked selection of economics content from around the web.
This week: Austerity is supposed to reduce debt and stabilise recessions – but has it worked? Also why Australia’s macro policies have been successful, and the case for legalising prostitution.
ESSA, 14 October 2012