Adam Smith set economists and examination question: what determines long-run normal prices and the associated rate of profit. The fundamental difficulty is that the long-run equilibrium prices of reproducible means of production (Smith's “natural” prices) must satisfy two conditions at the...

The transformation of international financial markets and the future of the eurozone (by John Eatwell; pp. 1-6) Keywords Financial Markets, euro, Debt Crisis Countries covered European Union Topics Macroeconomic Analysis and Policy The harmonisation of banking supervision a chokehold (by Tomasz...

The widespread liberalization of international financial flows followed the end of the Bretton Woods system of fixed parities among the world’s major currencies. The trend toward openness has accelerated in the 1980’s and 1990’s and liberalization is now spreading rapidly to emerging...

Given that financial markets operate as a Keynesian beauty contest and the real economy has no automatic tendency to converge to full-employment growth, then the simple rules of the game embodied in the policy positions believed by market participants to be held by other market participants will...