Features

Review: MMT lives up to some of its promises

29 May 2020

“The Deficit Myth” clearly explains why governments should aim to balance the economy, not the budget. Stephanie Kelton’s book comes at a good time, as huge deficits will help limit the pandemic’s damage. Unfortunately, Modern Monetary Theory suffers from narrowness and naivete.

Irish eyes keep smiling despite a strict lockdown

29 May 2020

Village pubs are shut until August. The Emerald Isle’s restrictions may look extreme but have kept deaths low even if unemployment has soared to near 30%. Yet with ample supplies and a clear reopening plan, Matt Damon isn’t alone in finding Ireland an ideal pandemic bolthole.

Vacant arenas fortify TV’s financial grip on sport

28 May 2020

When games restart, distancing rules will mean emptier soccer and baseball stadiums. Sports which rely less on live crowds, like golf or Formula 1, may benefit. More home viewers should further boost the value of media rights, already worth $51 bln, and offset lost ticket sales.

Burst Michigan dams send pollution risk to surface

27 May 2020

Flooding after heavy rain almost reached a Dow chemical-storage site. That’s one crisis averted, but in general, companies pay too little attention to water contamination. Its effects are vast and are part of recent high-profile legal fights. But cleaning up won’t break the bank.

Guest view: Debt crisis will delay global recovery

25 May 2020

The world is facing an emerging market blowup of unprecedented breadth that will damage confidence in the international financial system, former Citibank Chairman William Rhodes and Stuart Mackintosh argue. Easing the blow requires the United States and China to work together.

Review: Michael Jordan marks capitalism’s end, too

22 May 2020

ESPN’s documentary “The Last Dance” explores the basketball legend who defined the 1990s and the modern sports industry. He personifies U.S. business – with his intense competitiveness and bullying. He’s a reminder of when U.S. dominance looked like a slam dunk.

Regulators will owe banks a favour post-pandemic

21 May 2020

In contrast to 2008, lenders have so far helped cushion Covid-19’s economic blow, while central banks have propped up financial markets. The crisis highlights banks’ value as steady providers of credit. That will lead to some looser rules - and possibly a green light for M&A.

It’s a long jump back onto the travel bandwagon

19 May 2020

Despite the whopping 30% fall in globetrotting expected this year, tourists will pack their bags again just as they have after past crises. Health precautions will add costs, however, while empty middle seats hurt revenue. The relevance of corporate flyers also is bound to wane.

Texas is U.S. state cash dilemma on steroids

18 May 2020

The onetime republic has low tax rates, modest spending and a love of small government. It also has a books-balancing problem, because of its reliance on oil and sales taxes. The state may have to go hat in hand to Washington. But if Texas needs special handouts, who doesn’t?

Breakdown: Fed is right to nix negative rates

15 May 2020

Futures markets are pricing in a small chance of policy interest rates going below zero even though Jay Powell, chair of the U.S. central bank, rebuffed the idea this week. Europe and Japan are already in that territory. Breakingviews explains why D.C. can afford to say no.