economics

Ashley Smith interviews Michael Roberts about the system’s seemingly intractable crisis, the looming threat of war between great powers, and the desperate need for international working-class solidarity against militarism.
The crisis in the banking industry has sent stock markets around the world into gyrations. What caused all of this? Is this a passing crisis? What impact will it have on the real economy? Ashley Smith interviews Michael Roberts.
Mike Treen - The key questions for Marx were understanding why capitalism operates the way it does and whether capitalism is a historically limited system that will reach a limit and need to be superseded.

The return of high inflation after the global pandemic poses a major political and analytical challenge for labour and the left. On top of cuts to real wages resulting from the wide gap between inflation and pay, high and rising inflation has led central banks, including the Bank of Canada, to hike interest rates sharply. This is raising the debt servicing costs of households, businesses and governments and making new borrowing more expensive.

By Lisbeth Latham

October 7, 2020 — Links International Journal of Socialist Renewal reposted from Revitalising Labour — The current COVID pandemic has caused massive financial damage to the global economy, damage which has been felt viscerally by working people in the form of dramatically reduced incomes and the loss of millions of jobs. As we progress through the pandemic and look hopefully towards its ending and eventual recovery, minds have begun to look towards what the eventual rebuilding of the economy might look like. Whilst capital, and its representatives in governments, are already looking towards an, even more, deregulated labour market and a general deepening of the neoliberal model, on the other hand, alternative models for recovery are being forward, most particularly that proposed the by the Australian Council of Trade Unions which draws its inspiration from the post-war recovery globally and most particularly in Australia post the Second World War. While this example has understandable appeal, it is well known, it refers to a period of massive and sustained economic growth. It is a deeply problematic model for recovery to the current period of crisis as it fails to understand the roots of the recovery post Second World War which will not be easily replicated but more importantly fails to recognise the broader reality of the global climate crisis that also confronts us, and which should mean we are wary of productivist solutions to this crisis.

By Adam Hanieh

By Mike Treen

September 7,2019 — Links International Journal of Socialist Renewal reposted from The Daily Blog NZ — What is behind the “unorthodox” monetary policies of the US and other Central Banks?

There is much discussion today around how effective monetary policies are in regulating the ups and downs of the business cycle.

Monetary policies are run by the Central Banks of the respective countries with the US Federal Reserve operating like the world’s central bank. Their principal tools are the setting of certain interest rates they can control or influence and creating or reducing the supply of token money.

The US Federal Reserve resumed monetary creation policies earlier than expected at its July 30/31 meeting including a cut in what is known as the federal funds rate from 2.5% to 2.25%. They also halted the repurchase of the massive amounts of token money issued between October 2008 and October 2015 in response to the global financial and economic crisis of that time.

To understand what is happening we need to understand the interaction of three types of money in existence today.

Reviewed by Tony Norfield Finance Capital Today: Corporations and
By Dick Nichols November 1, 2016 — Links International Journal of Socialist Renewal — The trials of major European banks, starting with “venerable institutions” like the Monte dei Paschi di Siena (the world’s oldest bank) and Deutsche Bank (Germany’s largest), have raised the spectre of another 2008 — a “Lehman Brothers times five” in the words of one finance market analyst.