The Weekend Quiz – November 17-18, 2018 – answers and discussion

Here are the answers with discussion for this Weekend’s Quiz. The information provided should help you work out why you missed a question or three! If you haven’t already done the Quiz from yesterday then have a go at it before you read the answers. I hope this helps you develop an understanding of modern monetary theory (MMT) and its application to macroeconomic thinking. Comments as usual welcome, especially if I have made an error.
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    The Weekend Quiz – November 17-18, 2018

    Welcome to The Weekend Quiz. The quiz tests whether you have been paying attention or not to the blog posts that I post. See how you go with the following questions. Your results are only known to you and no records are retained.
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      Posted in Saturday quiz | 6 Comments

      Australian labour market – treading water this month

      Today, the Australian Bureau of Statistics released the latest data – Labour Force, Australia, October 2018 – which show that the Australian labour market really was treading water despite the improvement in employment growth, from last month’s outcome where Australia endured zero growth. The moderate employment growth, however, trailed behind the growth in the labour force and unemployment rose a bit. Monthly hours worked remained on a flat trend. The labour market remains in a fairly weak state – the growth in employment is not sufficient to match the growth in labour supply and the broader measures of labour underutilisation remain at persistently elevated levels. The Australian labour market remains a considerable distance from full employment. There is clear room for some serious policy expansion at present.
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        EU forecasts are notoriously poor

        I am travelling most of today to distant climes. And it is Wednesday, my alleged shorter blog day. Apart from some scintillating music suggestions today, I foreshadowed in Monday’s blog post, which analysed the British national accounts, that I would make some statements about the EU forecasts released in their latest – European Economic Forecast. Autumn 2018 – (published November 8, 2018). The forecasts posited that the UK would be among the two worst performers for 2019 in terms of Real GDP growth, accompanied by the waning Italy. And within seconds of the forecasts being published, social media was a light with those opposed to Brexit, using the forecasts to claim that Brexit would be a disaster – again! Brexit may still turn out to be a disaster. But these forecasts should be treated with a grain of salt – they are ideological in nature and the forecasting performance of the EU has not been good.
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          Posted in Britain, Eurozone, Music, UK Economy | 1 Comment

          Financial services agreements – the EU as a neoliberal, corporatist project

          I have been reading the new book by Costas Lapavitsas – ‘The Left Case Against the EU’ – which has been recently published. It is solid and clearly explains why the EU is not an institution or structure than anyone on the progressive Left should support or think is capable of reform any time soon. It has become a neoliberal, corporatist state and hierarchical in operation, with Germany at the apex bullying the weaker states into submission. Divergence in outcomes across the geographic spread is the norm. It is also the anathema of our concepts of democracy both in concept and operation. It is more like a cabal of elites who are unelected and, largely unaccountable. By giving their support to this monstrosity, the traditional Left political parties (social democrats, socialists etc) have been increasingly wiped out such is the anger of voters to what has become a massive coup by capital against labour. These are the themes that Thomas Fazi and I also explored in our recent book – Reclaiming the State: A Progressive Vision of Sovereignty for a Post-Neoliberal World (Pluto Books, 2017). I also just finished reading an interesting report – Financial Regulation challenged by European Trade Policy – published by the Veblen Institute and Finance Watch (October 2, 2018), which examines “the impact of European trade policy on financial regulation”. It is essential reading for those progressives who still think that Britain should remain in the EU. If they understand the research findings they would change their minds.
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            Posted in Britain, Demise of the Left, Eurozone, Reclaim the State, UK Economy | 23 Comments

            British growth strengthens in September quarter 2018

            On Thursday (November 8, 2018), the British Office of National Statistics (ONS) released the – GDP first quarterly estimate, UK: July to September 2018 – data, the first release under their new publication model, which is designed to improve “the accuracy and reliability” of the initial (formally denoted the “preliminary”) release. The next update will come in December and the expectation is that there will be less revisions, which is a good thing for those trying to assess where things are at. Remember, also that national accounts data is a rear-vision view of the economy – where its been rather than necessarily where it is at, although the two ‘views’ are obviously linked. The third-quarter national accounts data shows that Britain grew by 0.6 per cent, with “all four sectors” contributing to what is a strong result. But, under the headline, are mixed trends: household consumption spending continues to grow with rising debt, although wages growth appears to be moving finally; business investment was negative; and net exports “contributed 0.8 percentage points” with a strengthening of exports. What the data tells us at this stage is that Britain continues to defy the claims that a meltdown is imminent as a result of Brexit. There appears to be a resilience that is driving relatively strong growth. And, for all those who have been hammering the point that Britain is the worst-performed (in growth terms) of the EU Member States, they will have to revise their scripts. Britain is now growing much faster than many other European economies.
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              Posted in Britain, National Accounts, UK Economy | 9 Comments

              The Weekend Quiz – November 10-11, 2018 – answers and discussion

              Here are the answers with discussion for this Weekend’s Quiz. The information provided should help you work out why you missed a question or three! If you haven’t already done the Quiz from yesterday then have a go at it before you read the answers. I hope this helps you develop an understanding of Modern Monetary Theory (MMT) and its application to macroeconomic thinking. Comments as usual welcome, especially if I have made an error.
              Read the rest of this entry »

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                Posted in Saturday quiz | 6 Comments

                The Weekend Quiz – November 10-11, 2018

                Welcome to The Weekend Quiz. The quiz tests whether you have been paying attention or not to the blog posts that I post. See how you go with the following questions. Your results are only known to you and no records are retained.
                Read the rest of this entry »

                Spread the word ...
                  Posted in Saturday quiz | 6 Comments

                  Political censorship in Australian research processes – towards authoritarianism

                  Regular readers will know that I place great value in the disciplines we broadly describe as the Humanities. An understanding of knowledge that history, language, philosophy, geography, politics, sociology, anthropology, music, drama, classical studies and the like is essential if we are to advance societies and avoid the mindless descent into tribalism and authoritarianism. Last month, two things were revealed. First, the Federal Minister for Education vetoed successful grant applications for funding under the Australian Research Council processes, effectively politicising the process. He took exception to the topics. His decision was only revealed months later through interrogations during a Senate Estimates hearing. Second, an Australian university released a research report it had commissioned – The Value of the Humanities – which sought to articulate “the value of the Humanities to students thinking about their education and career options and to businesses faced with hiring choices”. It shows the immense value that teaching and research in the Humanities brings to employers, individuals and society in general. It makes the Federal minister look like a fool, although that was not its intent. A fool and one who is deeply insecure about allowing knowledge to proliferate. The latter is the hallmark of an authoritarian regime.
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                    Posted in Framing and Language, Higher Education, Politics | 19 Comments

                    Corbyn more scary than Brexit

                    It is Wednesday, so a truly short blog. We have to proof read the final copy edit of our Macroeconomics textbook by the end of the next fortnight. Tough ask. But apart from a music journey today, the richest people living in Britain are planning journeys as I write (they certainly are not sleeping) because they are scared witless about what Jeremy Corbyn will do to them once he is elected. This fear is even greater than anything Brexit will bring and the proponents of this narrative have also admitted that Brexit will not alter Britain’s position as a “global wealth hub”. Pity about that. I was hoping they would take all their banks and dodgy financial companies with them. Anyway, I am an Australian, as I am being increasingly told these days by those who claim I should stay out of British debates. Primer: I am not uncertain about my nationality. And, I am fast becoming a major critic of Modern Monetary Theory … read on.
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                      Posted in Britain, Fiscal Statements, Music, UK Economy | 29 Comments