Links. What do we need the state for?
- In and after 2008 banks have received an in-cre-di-ble amount of state money. It can be argued that a main reason why pensions have to be cut, again, in Greece is this perceived need to shore up the banks. Matthew Klein argues (based upon a BIS paper) that the need for government transfers to banks would have been much smaller why lending would have been higher if the banks had paid less dividends and had bought back less dividends.
- A disillusioned Thomas Fazi argues that ´The Left´ should not so much embrace but at least acknowledge the importance of nationalism: ´So unless we develop a progressive, well, a progressive nationalism sounds quite bad, so we definitely need to find a better word, but we have to develop a progressive agenda that understands that change – especially in the eurozone – must first happen at the national level. If not, we are doomed.´Mind that authoritarian nationalism is the main theme of the populist backlash (Le Pen, Wilders, Trump, Alternative fùr Deutschland) which at this moment in many countries seems to be backed by about 30% of the vote.
- Frances Coppola shows what happens when a not-so-progressive agenda hijacks the state. Too much German savings which, predictably, drives down interest rates. Schauble, not Draghi, is the real ´low interst monster´.
- An increasingly less neoclassical Brad deLong argues that the state will grow – as we need more non-market coordination, not because of market failures but because of non-market opportunities. And much more.