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Take a look at the graph below. It is the level of real GDP in Denmark during the 1930s and over the past decade.
The horrible terror attacks in Belgium has further escalated the fears of terror in Europe and policy makers from all over the continent are calling for new measures to fight extremism and populist politicians have been fast to call for closing Europe’s borders. However, the clear risk is that the economic costs of such measures easily could be larger than what can be justified by the actual risks from terror.
I strongly believe in reason and sound economic analysis and strongly object to economic and social policies being based on "emotions" and the sentiment of the day.
In 2008 Iceland was hit by a massive banking crisis and the economy went into a tailspin. However, the Icelandic economy has since then recovered strongly and continues to grow robustly.
Yesterday we got the news that the Egyptian central bank had devalued the pound and announced that the country is moving closer to a freely floating exchange rate.
I am a regular contributor to Geopolitical Information Service (GIS). This is from my latest article at GIS:
Believe it or not – one of my favourite books on the Great Depression is not about monetary policy, but rather wage stickiness in the US labour market and failed labour market policies during the Roosevelt administration. The book is Richard Vedder and Lowell Gallaway’s “Out of Work: Unemployment and Government in Twentieth-Century America”.
The are few policies as damaging as the global War on Drugs.