Modern Politicians and Economic Growth

The fear of a recession is leading us to a debt crisis

Today, I will provide you with something of an introduction to economic growth and sovereign debt crises. I consider this topic to become timely within the next 12 months or so.

I studied economic growth for 15 years in academia, starting with my Master’s Thesis which dealt with the relationship between income inequality and economic growth. It also became the topic of my PhD Thesis. Like my (master’s) thesis supervisor, Professor Mikko Puhakka, told us students in his course on economic growth, “When you start to think about economic growth, there’s really not much more you can think of.” The topic is simply so interesting and complex that it consumes you. For me, it did this for 15 years and was accompanied by another mesmerizing topic, economic crises, after 2008. I mostly studied them through statistical analysis. Here are a few examples of my/our work.

I will publish a lengthier explanation on the “Mystery of Economic Growth” a bit later. In this post, I want to explain why the current political thinking towards economic growth and recessions is leading us into an economic crisis.