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[...] what economists call moral hazard is what normal people call trust. You cannot eliminate the former without destroying the capacity for generating the latter. Without some degree of rule ambiguity and norms of reciprocity, trust cannot emerge. The EU's political project was built on trust, no…

The Treasury's argument, echoing Hume and Smith, was that to borrow money to finance spending, the government would have to offer better terms than those available elsewhere. This would have the effect of reducing overall investment by
"crowding out" private capital while increasing the debt for …

[...] This is ordoliberalism gone mad, as well as the logic behind the euro [...] those rules only ever apply to sovereigns. [...] there was never much attention paid to the possibility that private actors, such as banks, would behave badly. Yet this is exactly what happened, and the EU is still bl…

[...] the dumping of other (non-Greek) assets to cover their (Greek) losses, which then lowers the value of the unrelated assets, eventually leading to a fire sale of good assets as a whole [...]

[...] who should get, for example, a tax cut? The Keynesian wants to give it to the poor so they will consume now to boost demand and consumption. Meanwhile, the neoliberal wants to give it to the rich to invest wisely. [...]