Tag: Economy

Has geography ceased to matter in the age of globalisation, as many people believe? In this article John Kay shows that living standards and patterns of production are still largely determined by geographical factors.

The interrelationship of technology, economic advance, and social and political systems, has many ramifications. The last ten years, in economic terms, have constituted an American decade. But the way in which the American decade comes to an end is probably the most important issue for the world economy today.

The Edge of Now: David Howell, Macmillan 2000, Prospect Magazine. One of the problems faced by economists is that everyone knows about economics. Most...

Raising prices may seem an effective way to resolve a fuel shortage. But economists should learn to value solidarity.

French fuel blockades, the new economy and the relative weakness of the euro.

According to conventional wisdom, New Zealand has done everything right in its economic policies: rolling back the slate in industry and welfare, establishing an independent central bank, repaying its public debt. Yet over the fifteen years of reform its economic performance has been dismal. New Zealand is the new Argentina, a once-rich state.

The dynamics of the new economy are not so far removed from those of the traditional business world. Network externalities and compatibility standards do not have the significance people think.

“Do the math” has become the mantra of a generation of consultants and investment bankers. The new economy, they claim, requires new principles of valuation. But the rules of logic hold even in cyberspace, and so do the principles of economics. Profits are hard to earn in competitive businesses, and markets that are not competitive are usually regulated.

With a sense of historical perspective that is submerged by today's e-babble, we can see that some of these dreams will have to become reality simply to ensure that the pace of change over the next century is as rapid as the pace of change has been over the last two centuries.

“Rip-Off Britain” has turned into a damp squib. Economists are unlikely to be surprised.