Category Archives: Biden

History Advises Biden to Match Signals with Actions in Ukraine

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December 24, 2021 — As Russian troops mass along the border with Ukraine, the White House has been calibrating its response. President Joe Biden has warned that in the event of an invasion, the US and allies would make Russian President Vladimir Putin pay a heavy price. Likely measures would particularly include economic sanctions such as a cut-off from the SWIFT payments system and turning off the new Nord Stream 2 pipeline.  Good. It is possible that such threats will deter Putin.

Biden has also said that he would not send military personnel.  Also, good, given that a threat to intervene militarily would be a bluff. Americans and Europeans are not in fact prepared to send troops to Ukraine. Even though the Russian invasion of a sovereign European country is a terrible thing, reminiscent of 1939, all perceive that Putin feels his country’s interests to be at stake in Ukraine more than Americans do. read more

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Inflation is Back, But the 1970s Aren’t

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November 29, 2021 — Are the US and other advanced countries experiencing stagflation?  Stagflation is the unfortunate combination of high inflation with low growth in output and employment that characterized the mid-1970s.  Are we back in that decade?

No.  At least not the US. What it is experiencing now is simply (moderate) inflation, without the stagnation part.  More like the 1960s than the 1970s.

It is true that the US headline CPI inflation rate reached 6.2 % over the 12 months to October, the highest since 1991.  Few are still forecasting an early return to 2 % , the Fed’s long-run target.  Inflation is also the highest in 10 years in the UK (4.2 %) and the EU (4.4 %), though it remains low in Japan.  12-month inflation is 4.1 % in the eurozone, the highest since a peak in July 2008.  (All these regions have lower – but still elevated — inflation rates if one uses the core measure, which takes out fast-rising food and energy prices. US core inflation is 4.6%.) read more

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The Global Outlook

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          This set of questions and answers appears in Capital Magazine in July 2021, translated into Turkish. read more

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