Nouriel Roubini is not alone in declaring the "Anglo Saxon" model to have failed. Chris Dillow disagrees. He shows that, judging from GDP numbers, the "Anglo Saxon" countries are not doing worse than the others, so news of the instability and death of the Anglo Saxon model may be exaggerated.
But it all depends on how you define "Anglo Saxon". Chris defines it theoretically as "...lightly-regulated financial markets and high debt...". He defines it empirically as UK and US, in comparison to Japan and the Eurozone.
"Lightly-regulated" maybe, but "high debt" is the opposite of what "Anglo Saxon" used to mean, in past episodes of Anglo Saxon bashing. In fact, if we switch to a more traditional definition of "Anglo Saxon", the current crisis shows the stability of the Anglo Saxon model, and the failure of the "Continental" model.
Continue reading "The stable "Anglo Saxon" model of finance" »
Recent Comments