Macroeconomics

"Can't blame it on the Bankers ? .... Try the Economists!"

Macroeconomics is a broad subject which ultimately translates into a number of high-level key indicators of economic performance.

Economic theories are all dated in their design. They rely on static assumptions and none has ever anticipated the concept of globalization with the relentless rise of the Emerging Economies, or the changes in demographics, or even the impact of the boom in new technologies since the 1990s.

The reliance on GDP growth as the only benchmark of prosperity at any fiscal and monetary cost is a fallacy.

As a tentative remedy to fundamental economic stagnation, some of the most renowned economists have ventured into creative solutions: Modern Monetary Theory (merely a desperate monetary flight forward which has already happened post-GFC), universal wages (without having to work for it), and redistribution theories which are reminiscent of the Communist times.

All of the above has been swept away by the inflation shock of 2021-2022 and the return to positive risk premia. Fundamental questions are now being raised about sustainability given the large budget deficits and outstanding debts worldwide.

In this section we describe the fundamental imbalances built over the last 30 years, we debunk the theories for what they really are and we explore the potential outcomes with a particular focus on the main pillars that are demographics, fiscal policy, monetary policy and inflation.

Other major themes contributing to Macroeconomics are covered in our Society section.

Sections:
Demographics
Fiscal Policy
Monetary Policy
Inflation

Publications