Benn Steil: The Fed could be tightening more than it realizes
byTen years ago, before the collapse of Lehman Brothers rocked global financial markets, the Fed’s balance sheet stood at $925 billion—mostly U.S. Treasuries. After…
Economics
Is there a place for behavioural economics in the field of economics?
byRecently, a relatively new economics called Behavioural Economics (BE) has started to gain popularity. Its practitioners such as Daniel Kahneman, Vernon Smith and Richard…
Cryptos may destabilise fiat
byThe assumption in some quarters is that crypto-currencies will replace gold as money, or at least challenge it. This is an error borne out…
Is There Any Way Out of the ECB’s Trap?
byBy Daniel Lacalle The ECB faces the Devil’s Alternative that Frederick Forsyth mentioned in one of his books. All options are potentially riskly. Mario Draghi knows that…
Close to the edge
by“Look at it this way. In 100 years, who’s gonna care ?” Nancy, waitress, in ‘The Terminator’ (screenplay by James Cameron and Gale…
Is funding about money?
byA key factor that constrains people’s ability to generate goods and services is the scarcity of funding. Contrary to popular thinking, funding is not…
What Hayek Tells us about the Link between Ultra-loose Monetary Policy and Political Instability
byBy Professor Gunther Schnabl, University of Leipzig The European Central Bank will increase the overall volume of its bond purchase program to…
Yellen’s Poor Legacy — and Powell’s Challenges
byBy Daniel Lacalle The appointment of Jerome Powell as the new chair of the Federal Reserve must be interpreted by the markets as a sign…
Zero Hedge: The Swiss National Bank Now Owns A Record $88 Billion In US Stocks
byIn the third quarter of 2017, one in which the global economy was supposedly undergoing an unprecedented “coordinated growth spurt”, and in which central…
For god’s sake, stop!
by“Most economists, it seems, believe strongly in their own superior intelligence and take themselves far too seriously. In his open letter of 22 July…