destabilizing stable economics

Global Economy

International Trade and Globalization: Are Benefits Truly Mutual?

International Trade and Globalization: Are Benefits Truly Mutual?

By Aabid Firdausi. The euphoria around international trade and the general consensus regarding capitalism’s inevitable sustenance among countries of the Global South is at least partly due to the absence of an alternative after the collapse of the Soviet Union. The politics of capitalism, with its expansionary dynamics, has assumed a truly “global” […]

Trump’s Cuba Policy Will Hurt, Not Help Cubans

Trump’s Cuba Policy Will Hurt, Not Help Cubans

In a speech showing no regard to Cuban’s historical sensitivities, Trump announced from Miami that he was “canceling the last administration’s completely one-sided deal with Cuba.” By that he meant reversing from Obama’s policy of engagement with Cuba to the old sanctions-based approach. The decision has been extensively criticized, from both the […]

Hidden in Plain Sight: Illicit Financial Flows

Hidden in Plain Sight: Illicit Financial Flows

The importance of Illicit Financial Flows (IFFs) in the context of economic development has slowly come to grasp people’s attention. The World Bank defines IFFs as “money illegally earned, transferred, or used that crosses borders.” Since 2006, the Global Financial Integrity (GFI), a Washington, DC-based think tank, has done extensive research on […]

Using Minsky to Better Understand Economic Development – Part 2

Using Minsky to Better Understand Economic Development – Part 2

The work of Hyman Minsky highlighted the essential role of finance in the capital development of an economy. The greater a nation’s reliance on debt relative to internal funds, the more “fragile” the economy becomes. The first part of this post used these insights to uncover the weaknesses of today’s global economy. […]

Using Minsky to Better Understand Economic Development – Part 1

Using Minsky to Better Understand Economic Development – Part 1

This year the global system has seen two major shocks: Brexit and Trump. What these events have in common is their populist rhetoric that promised to bring back jobs, while also making xenophobic statements. These elections have tapped into growing anxiety over job security, which has not been addressed by most governments […]

The Trans-Pacific Partnership, Trade Deals and Income Inequality

The Trans-Pacific Partnership, Trade Deals and Income Inequality

When Oxfam’s 2016 Davos Report revealed that 62 people own half of the global wealth many were shocked by this finding and attributed it to high poverty levels in low-income countries. However, wealth inequality is also a problem in rich countries like the US. The OECD found that the wealthiest 10% of […]

Class Interests & Discordant Politics: Brexit & the Trump Campaign

Class Interests & Discordant Politics: Brexit & the Trump Campaign

The shortcomings and false promises of mainstream economics are impossible to ignore in the context of the Brexit vote and Trump’s success in the Republican primaries, with working and middle class individuals in both the UK and the US clinging to some promise of socio-economic salvation. Lately, we’ve seen an especially pronounced […]

Carbon Trading, Sustainable Development and Financial Fragility

Carbon Trading, Sustainable Development and Financial Fragility

The response to climate change is one of the most pressing policy issues of our time. Carbon trading assets are currently worth more than $100 billion. This market is expected to reach $3 trillion by 2020. In Stabilizing an Unstable Economy Hyman Minsky notes that the markets for financial assets are inherently […]