I have a new article out in Industrial and Corporate Change, where I make the case that ”soft budget constraints” can be good for innovation. academic.oup.com/icc/advance…

We saw the same bad faith during the Oslo negotiations. You can't trust any agreement w/them; you can't trust people who murder emissaries and negociators & don't respect ceasefires. Ehud Barak kept increasing Area C with such bad faith that even Clinton noticed; then blamed Palestinians for it.

BREAKING: Justice Jeremy Johnson has ruled that the Filton 4 will be sentenced as terrorists – even though two juries refused to convict them of violence charges over their efforts to disable an Israeli factory in the UK making killer drones for use in Gaza. They were found guilty of a minor charge of criminal damage. Judge Johnson kept the jury in the dark of his plans to sentence the four as terrorists. This is the first time in British legal history that anyone has been sentenced as a terrorist for damaging property. It's a very dark moment in an increasingly authoritarian Britain. Thousands of legal professionals complained about Johnson's clear abuses of legal procedures to help the government's case for proscribing Palestine Action as a terrorist group. Johnson has now proved this was always a show trial. I explain how he rigged the two trials here: jonathancook.substack.com/p/…

Everything in this post except #1 is true of Schumpeter. But some people at least haven't moved on since Bohm-Bawerk.

Since franchisors control nearly all variables influencing franchisee profitability *except* labor costs, franchising is tailor made for disciplining a low-wage, high-turnover workforce. In short, the business model forces small business owners to ruthlessly squeeze labor.

Mycket bra inlägg

Debatt och replik. Lönebildningen är inte orsaken till arbetslösheten. Läs gärna! dagensarena.se/opinion/loneb…

Systemfel i fjärrvärmen Ännu ett skräckexempel på hur kunder drabbas då privata företag ges monopol. Ska det vara så svårt att fatta att monopol ska ägas direkt av samhället. di.se/debatt/systemfel-i-fja…

Extreme heat is starting to reshape how India works. From factories and construction sites to delivery workers, businesses are adapting as soaring temperatures hit productivity and raise costs. But as the country gets hotter, the economic risks are growing. @JeelaniReports explains: bloom.bg/4eeLYWl

Nu klart att @KatalysInst chefsekonom @MaxJerneck ansluter till @StevenHailAus temadag mot åtstramningspolitiken lördagen den 27 juni på Moderna Museet i Stockholm. Missa inte detta! Mer info och länk till anmälan hittar man via länken. mmtforsverige.se/post/en-nat…

OECD's Subsidy-Centric Narrative of China’s Emerging Industries Is Increasingly Flawed & Outdated: CF40 Zhu He & Guo Kai examine over 5,300 A-share companies & argue they are increasingly driven by internal cash flow, equity financing, $ profitability rather than cheap credit

The world has warmed by around 1.4C since 1850. It took 148 years for the first half of that warming to occur, and just 27 years for the second half!

Cutting global net emissions to zero using existing technical and policy solutions will cost at most a few percent of GDP, with many solutions economically beneficial. Halving global emissions by limiting GDP growth costs about half of the global GDP. Not a tough choice.

And it wasn’t appropriate for the last war either or the one before that (remember Trichet?)

Interesting IMF paper on the drivers of Germany's downturn: Weakness is most visible in manufacturing and construction; high rates, costly energy, and weak demand have reduced output/productivity. Long-standing issues (underinvestment, aging, ...) have amplified the downturn.

Why did the ECB hike today? Why do they hike every time energy prices spike? Because of the 1970s. For half a century the Bundesbank has been lecturing everyone on how Germany "opted out" of the Great Inflation by refusing to accommodate oil shocks. One of history's great works of fiction:

Väldigt konstigt att utlandsfödda inte röstar på SD-blocket. Undrar vad det kan bero på 🤔🤔

The ECB's interest rate hike does not help. It reminds me of Trichet's policy mistakes when energy prices rebounded in 2011, after energy prices recovered from a slump. This time, energy prices jumped because of a war. Why increase interest rates? 🤔 newyorker.com/magazine/2011/…

Macro policy – both monetary and fiscal – does impact “structural” trends, including investment and productivity. Scrapping the debt brake was a key *structural* reform for Germany! 4/ x.com/DavideOneglia/status/1…

We can argue all day about “spending efficiency” and “multipliers”, but there is little doubt that NGEU meaningfully boosted capex in recipient countries, while Germany stagnated. (And yes, the charts below EXCLUDE construction) 3/

Good IMF paper on 🇩🇪 post-Covid downturn. It correctly identifies cyclical forces and ECB as big part of the issue and includes “persistent underinvestment in public infrastructure, skills, and innovation” on the structural side. But more should be said on the role of fiscal 1/