Sunday, 14 October 2012

One year of blog

This day a year ago in London, in a computer room at LSE, I opened the "Don't worry, I'm an economist!" blog. What started off as an idea to educate readers on some basic economic concepts and mechanisms (the opening topics were QE, banking reform, financial transaction tax, credit easing, regulation and the euro break-up) ended up as a place where I contemplate on any idea I come across, often analyzed from a political economy, libertarian, and institutional perspective (depending on the topic). I am happy to say that the blog has evolved into a platform for my ideas on what caused the crisis (see a summary of my paper on the political economy of the crisis, or an analysis into the causes of the Eurozone contagion, both of which I have decided to make into a special page), and how to start the recovery. 

What I hoped to have achieved is to send a message on what is needed to start a recovery - a set of pro-market structural reforms supported by a strong institutional environment. This is not a 'one size fits all' approach since every country has a different formal institutional environment characterized by different historical and cultural development of its informal institutions. The shock of the crisis that led to its long-lasting consequences wasn't an aggregate demand shock, but a structural shock characterized by years of declining productivity and an inability to adapt to a huge technological change in the past 10-15 years. So it is only natural to suggest that the old system needs to be changed structurally to adapt to its new surroundings and new assumptions. Just like an old economics model, it needs to recalculate in new variables. 

Since this is an anniversary post, I'll look back on some of my proudest (and most read) works: 

I am particularly thankful on the feedback I received from some of the readers on how helpful the blog has been to them. And I am thankful for all the interesting comments I receive that often light up a discussion on a particular topic. 

Finally, thanks to all my readers for making this worthwhile.