Regular readers will know that I hate the term NAIRU – or Non-Accelerating-Inflation-Rate-of-Unemployment – which is a concoction invented by mainstream economists to maintain unemployment at elevated levels (to keep the working class in its place) and give cover to central banks to run monetary policies that redistribute income from poor to rich. If you search through my archives you will find many posts about this abomination. I am guessing with all the supply disruptions at present as a result of the illegal invasion of Iran, central bankers will start claiming interest rates will have to rise to curb the inflation. They will dress these claims up in some economic sophistry and the official speak will talk about NAIRUs and excessive demand pressures. Yet, in reality, there is no such justification. The rate rises will not get ships moving through the Strait of Hormuz more quickly, just as they did not get factories back to work during the early COVID period. Here is some analysis to support my point.
Economics
Wolfgang Streeck: Germany’s European Empire
In today’s Germany, Wolfgang Streeck argues, politicians laud “Europe” — while quietly using EU structures to advance German national interests. Read here
Climate Crisis
Climate Home News: EU’s reformed agricultural policy fails its climate goals, say green groups
COP26 a la EU Lawmakers have approved a reform to the Common Agricultural Policy, which critics say fails to deliver on the bloc’s Green Deal and climate goals Read here Maize harvesting at a farm […]
EU politics
Chris Dillow – Stumbling and Mumbling: The intelligent state
The best way to help workers is to create conditions which increase their bargaining power – which give them the option of using Johnny Paycheck’s words: “take this job and shove it”. Read here
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