Politics

Taming “animal spirits” for the sake of future generations

The unexpected rally in equity markets post US elections has been predicated upon a sudden arousal of “animal spirits” in the wake of the new administration’s policies, namely deregulation, tax cuts and infrastructure spending. The term is closely related to Nietzsche’s idea of “will to power”, and is equally subject to spin. A naïve use … Continued

Fake maths and the fiscal multiplier

Now that fiscal policy is back on center stage, its alter ego, the fiscal multiplier, is also reentering the scene. The concept is an elegant but simple one: an increase in government spending (for Keynesians), or a tax cut (for Supply-Side economists), can spur a manifold increase in economic activity – hereby its name – … Continued