Ann Pettifor

Fiscal Deficit

Britain, Korea and humanity’s life support systems.

This was my contribution to a publication of the Korean Labor Institute, 19th July, 2021 Since 2014 the world has endured the seven hottest years in recorded history. The wildfires, heatwaves, droughts and intense flooding that currently afflict rich and poor countries alike, are, scientists explain, the consequence of this heating. Children, led by Greta […]

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Remembering John Weeks

Late last month, pioneering socialist economist John Weeks passed away. Ann Pettifor remembers her colleague and friend – and his contributions to left-wing politics. This piece first appeared in Tribune magazine on 08 August, 2020. Please note correction at the end of this piece. John Weeks, brilliant Left economist and public intellectual, would have been

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The macroeconomic imperative of nationalisation

In Britain as in the US, governments are tackling the corona virus by undertaking actions that force the closure or collapse of companies large and small. To compensate, they are stepping in with subsidies and bailouts. Because millions of livelihoods are at stake these interventions are welcome and necessary. But we must demand more: not

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Why nationalisation of bailed-out firms is of macroeconomic importance.

In Britain as in the US, governments are tackling the corona virus by undertaking actions that force the closure or collapse of companies large and small. To compensate, they are stepping in with subsidies and bailouts. Because millions of livelihoods are at stake these interventions are welcome and necessary. But we must demand more: not

Why nationalisation of bailed-out firms is of macroeconomic importance. Read More »

The City of London’s distress because real change may be coming…

Alarm bells are distress signals. As this election campaign reaches its climax the Financial Times registers high levels of investor distress as its wealthy readers panic over the possibility that real change is coming. The change they fear is not automation and AI. No, it’s the possibility that “If Labour come to power on this

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How governments finance their spending (and its not from taxation).

Readers of this blog may know that Patrick Allen, founder of the Progressive Economy Forum (PEF) invited me to become a member of its distinguished Council in July this year. Other members include Professors John Weeks, Joseph Stiglitz, Stephany Griffiths-Jones, Robert Skidelsky, Daniela Gabor, Danny Darling, Ha Joon Chang and Doctors Johnna Montgomery, Geoff Tily,

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‘Deficit Financing’ or Deficit-Reduction Financing?

Introduction “Deficit financing” in contemporary economics is controversial – largely because of flawed economic approaches to a sovereign nation’s public finances. The first is the microeconomic approach that treats government budget deficits in much the same way as household deficits. In other words, the assumption that like a household, a government budget deficit is the consequence

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Do Tax Revenues Finance Government Spending?

The Economist had a piece  on Britain’s tax base in its 25th January edition. It begins with a reference to Denis Healey’s speech to the 1973 Labour conference, in which he promised that tax increases  would be met with “howls of anguish” from everyone, not just the rich. As it happens, I have been reviewing the

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UK Budget 2017 and OBR Forecast for British Economy: PRIME Evidence to Treasury Select Committee

On Wednesday 29 November 2017, PRIME’s director, Ann Pettifor, gave evidence at the Committee’s invitation to the UK Parliament’s Treasury Select Committee, together with Professor Jagjit Chadha, Director, National Institute of Economic and Social Research and Paul Johnson, Director, Institute for Fiscal Studies. A verbatim report of the discussion can be found on the Select Committee’s

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It’s not the public, but the private finance sector, stupid.

The Autumn Statement reveals but one thing: the Chancellor and his advisers are both ill-advised and dangerously ill-prepared for the forthcoming prolonged Depression. (And if you think I exaggerate, let me remind you that 20 years after the Japanese debt bubble burst, Tokyo house prices are still falling, and the stock market is worth 60% less

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