Franco Modigliani

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West’s household spending heads for decline as population ages and trade war looms

11 March 2018

As promised last week, today’s post looks at the impact of the ageing of the BabyBoomers on the prospects for economic growth. The fact that people are living up to a third longer than in 1950 should be something to celebrate.  But as I noted in my Financial Times letter, policymakers are in denial about the importance of […]

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Central banks’ reliance on defunct economic theory makes people worry their children will be worse off than themselves

27 November 2017

“Average UK wages in 2022 could still be lower than in 2008”  UK Office for Budget Responsibility While Western stock markets boom under the influence of central bank money-printing, wages for ordinary people are not doing so well.  So it is no wonder that Populism is rising, as voters worry their children will be worse […]

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Investors fear Fed’s outdated theories have hit sell-by date

6 June 2016

These are difficult times for companies and investors.  It is becoming more and more apparent that central bank stimulus policies have failed to counter today’s demand deficit, caused by ageing populations.  It is also clear that central bankers themselves have little idea of what is happening in the real economy. They have based their programmes […]