This September, overall inflation in Kenya reached a record high of 17.3 percent. One year ago it was just above 3 percent. Why has it increased so sharply even though Kenya has followed prudent macro policies?
For all their alleged naivete, the thousands of people who have participated in Occupy Wall Street (OWS) have managed to put their finger on something that has completely evaded the "Very Serious People" for more than three decades.
Free-market enthusiasts’ place in the history of economic thought will remain secure. But thinkers like Milton Friedman leave an ambiguous and puzzling legacy, because it is the interventionists who have succeeded in economic history, where it really matters.
Chinese households, in other words, should feel richer when the deposit rate rises and poorer when it declines. In that case, rising rates should be associated with rising, not declining, consumption and with higher, not lower, inflationary pressure.
Commodity-exporting countries are highly vulnerable to a sudden plunge in dollar prices, as a result of a new recession, an increase in US real interest rates, fluctuations in climate, or random sector-specific factors. Commodity bonds may offer a neat way to circumvent these risks.
Many on the left are suspicious of the idea that economic growth helps to reduce poverty in developing countries, and that redistribution is the key to poverty reduction. These assertions, however, are not borne out by the evidence.
In October 2008 Iceland’s three main banks—which made up almost the entire financial system—had just collapsed within a week of each other. The sense of fear and shock were palpable—few, if any, countries had ever experienced such a catastrophic economic crash.