Wynne Godley

In the last few weeks, I've been seeing a lot of buzz about Modern Monetary Theory aka MMT. And most of what I'm seeing is reductionist to the point of absurdity. When I see critics of MMT talking about it, they're mostly using MMT as a…

Godley shows that under all scenarios, debt/gdp stabilises at some combination of interest rate, growth rate and primary deficit/surplus - provided there is full employment. So debt/gdp does not "spiral out of control" if government…

In the case of Greece, with fuel, food, and medicine making up a large share of the import bill, further economic disruption and destabilization would likely result from a choice to exit the eurozone. Exiting the euro does not appear to be…

As you may know, I now use the sectoral balances approach very heavily in looking at economic forecasting. The crux of the sectoral balances is that, from an accounting perspective, every sector's deficit must be offset by an equal surplus…

Business Insider met with Goldman's Chief Economist Jan Hatzius and learned he is bullish on the US economy largely because he believes his Wynne Godley-inspired model of the US economy shows likely releveraging in the household sector. …

The following is an excerpt of an article written exactly twenty years ago on 8 October 1992 by the late Wynne Godley, a British economist, who predicted disaster for Europe’s planned single currency. This is the single most cogent and…

The problem cannot simply be a problem of current account imbalances—we’ve got them all across the US states. And the US, itself, runs a chronic current account deficit. But the US federal government is sovereign, it issues its own…

This week's weekly commentary on markets and the economy features Spain. In my view, the potential for downside economic and portfolio risk has increased markedly as we realise that Spain is at risk and there is no plan B in the euro zone.…