Eurozone Stability Under Threat of a ‘Bad Shock’
Remarkably, an increasing number of economists believe the Eurozone has addressed its weaknesses. Shades of the Great Moderation, circa 2006.
Read more...Category Archives: Currencies
Economists Mystified that Negative Interest Rates Aren’t Leading Consumers to Run Out and Spend
It been remarkable to witness the casual way in which central banks have plunged into negative interest rate terrain, based on questionable models. Now that this experiment isn’t working out so well, the response comes troubling close to, “Well, they work in theory, so we just need to do more or wait longer to see […]
Read more...Why the Crisis in Italy is Not Over
The structural roots of Italy’s economic problems.
Read more...China Destabilizes Global Economy by Exporting Deflation Through Currency Devaluation
China is behaving badly by trying to maintain growth at the cost of worsening deflation in the rest of the world.
Read more...Satyajit Das: What If Anything Does Brexit Really Signify?
An appraisal of the Brexit sound and fury.
Read more...Boris “Just Kidding” Johnson Outlines His Rainbows and Unicorns Brexit Plan
Boris Johnson is now the most hated person in the Western world.
Read more...Rebalancing, Wealth Transfers, and the Growth of Chinese Debt
By Michael Pettis, a Senior Associate at the Carnegie Endowment for International Peace and a finance professor at Peking University’s Guanghua School of Management. Cross posted from China Financial Markets. For the past ten years much of what I have written about debt in China was aimed mainly at trying to convince analysts and policymakers […]
Read more...Brexit: Fear, Loathing, and Anger on Both Sides of the Channel
Politicians in the UK and the EU are virtually at each other’s throats over Brexit.
Read more...The Sterling Depreciation of 2007-2008 and Its Implications for Brexit
The unexpected impact of the fall in sterling in 2007-2008 suggests Brexit could produce a drastic drop in UK living standards.
Read more...Brexit: The Crisis Begins
The Brexit vote was a stunning repudiation of neoliberalism and austerity. But what comes next?
Read more...Global Money: A Work in Progress
Bagehot outlined some of the requirements for global money. Are we closer to a solution?
Read more...Bond Market Flight to Safety as Investors Sweat Over Brexit Risk, Wobbly US Economy, Negative Rates
Investors got a big dose of bad news about the economy and geopolitics and reacted accordingly.
Read more...The New Abnormal: “Disequilibrium Flirting with Deflationary Depression”
The New Abnormal: a period of profound disequilibrium as the aftershocks of the Crisis collide with and complicate structural changes.
Read more...Michael Hudson: The Wall Street Economy is Draining the Real Economy
How Wall Street is interjecting itself into the economy so that more and more is diverted to pay interest, insurance and rent.
Read more...So Which Eurobank is Having Dollar Funding Problems?
Which Eurobank has led the ECB to tap its dollar swap line with the Fed?
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