Thomas Ferguson and Robert Johnson examine debates over the federal deficit in the context of the G-20's focus on austerity. They review current theories on the impact that deficits have on growth, and find that none makes a convincing argument that austerity is an effective stimulus. They assess the drivers behind the rising federal deficit, and conclude that "the risk to U.S. public finances...is much greater on a trajectory of austerity than from any risks incurred by the very low public cost of borrowing to spur investment in infrastructure, education, and science that would generate large social and private gains in productivity."

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In this working paper, Özgür Orhangazi argues that the relationship between the ‘real’ and financial sides of the economy has become increasingly complex and interwoven. He examines the relationship between the two in regard to labor and households, nonfinancial corporations, speculative asset bubbles, and global imbalances. He finds that while the financial sector contributed to the current problems in the economy, it provided solutions at other instances, and it shaped and was shaped by activity in the ‘real’ economy.

>> Download “Financial” vs. “Real”: An Overview of the Contradictory Role of Finance

In this working paper, Jane D’Arista argues that the Dodd-Frank Act is worthy of careful analysis because it lays out the structural issues underlying the financial crisis. She discusses two major aspects of the Act, pointing out how it both succeeded and failed in identifying and addressing structural faults in the global system. D’Arista sees success in provisions that deal with the interconnectedness of financial institutions, but expresses concern about the Act’s reaffirmation of pro-cyclical capital requirements as the primary tool in the post-crisis regulatory framework.

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In Africa's Odious Debts, James Boyce and Léonce Ndikumana explore the fact that the continent is actually a net creditor to the rest of the world. The extent of capital flight from sub-Saharan Africa is remarkable: more than $700 billion in the past four decades. But Africa’s foreign assets remain private and hidden, while its foreign debts are public, owed by the people of Africa through their governments. Payments on this public debt continue to drain scarce resources from Africa. The authors argue that African governments should repudiate these ‘odious debts’ from which their people derived no benefit, and that the international community should assist in this effort.

>> Read more about Africa's Odious Debts: How Foreign Loans and Capital Flight Bled a Continent
>> Watch the Real News interview with Professors Boyce and Ndikumana

In December 2010, the food price index surpassed its previous peak of June 2008, and prices have been maintained at this high level through September 2011. This pattern in food prices is creating justified fears of a renewal or intensification of the global food crisis. In this working paper, Jayati Ghosh, James Heintz and Robert Pollin review arguments and evidence to inform current debates on how to regulate commodity futures markets in the face of such price volatility and sustained high prices.

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The Great Recession has created fiscal crises for state and local governments. In response, state and local governments are cutting taxes, slashing wages and benefits for public workers, or even selling off state-owned facilities. In this article, now published in New Labor Forum, Robert Pollin and Jeffrey Thompson argue that these austerity policies are not the only possible responses to the crises, and propose alternative approaches that can close the budget gaps in the short term, promote a sustainable recovery, and, over the long term, help insulate state and local government budgets from the effects of recessions.

>> Download "State and Municipal Alternatives to Austerity"