Quite busy today. But a piece that I wrote for Al Jazeera on the prospect of a world recession in 2015 went up yesterday. It might be of interest to some readers. As the piece makes clear we cannot be sure that this will actually play out the way I outline. But there is certainly a distinct possibility. And for that alone it is worth commenting on.
Fixing the Economists 
Wat denk je over Wendell Berry?
Berry schreef het boek, What Matters?:Economics for a Renewed Commonwealth. zeer interessante.
But isn’t it a good thing that emerging markets are investing less nowadays? I remember a lot of economists and pundits saying that we must resolve global imbalances: the US needs to export more, emerging markets need to import more, China has to shift to a consumption-driven growth model, etc. This narrative sounds very simplistic, but really, why can’t consumption compensate for investment (and exports) to maintain trend growth? Do emerging markets suffer from a lack of (internal) aggregate demand too?
Yes, lack of internal AD. But it is likely structural. They have geared their economies toward exports, not domestic consumption.
Phil,
there’s an interesting discussion going on at Nick Rowe’s blog about ‘loanable funds’ theory and post-Keynesian economics (in the comments section):
http://worthwhile.typepad.com/worthwhile_canadian_initi/2014/09/the-orthodox-new-keynesian-position-on-liquidity-preference-vs-loanable-funds.html#more