Central banker: extinction of the species
July 9, 2019“Of course our central bank is independent”, the Turkish President, Recep Tayyip Erdogan, pretty much just declared, just before dismissing by presidential decree (on 7th July) the boss of Turkey’s central bank, Murat Cetinkaya, stating that “a central bank cannot ignore the signals sent by the President”. It was in the last century and…
Have populists become conservatives ?
June 29, 2019There was a time when “populism” was synonymous with governmental financial mismanagement and irresponsibility. Far exceeding budget constraints, the leaders of these groups and realms of thought would empty the public treasury, use up reserves and bring about monetary crises, inflation, capital outflows, recession and even payment defaults. In short, the reigning populists’ disdain…
Finance: at the heart of the climate emergency
June 18, 2019The UK is hoping to achieve climate neutrality by 2050. However, one of the important drivers that will help overcome the greatest challenge of our time – climate change – is outside governmental control. A nation cannot claim to be substantially reducing its greenhouse emissions without first regulating the flow of liquidity channelled towards…
The Monetary Theory (MMT) that has nothing Modern about it
June 11, 2019I’ve been writing it since 2010. I’ve released several books and hundreds of articles meticulously defending the position. Sovereign States – that being those who issue their own currency independently of any indexation – should learn to love, or at the very least live with, their public deficits. Because a nation that controls its…
China is quietly quaking in its boots
June 5, 2019Is China on the brink of a crisis similar to the one suffered last year by Argentina, due to a defective balance of payments? In such a situation, China would see itself short on dollars, unable to support its own currency! As for many other sovereign nations, the Yuan is built on its country’s…
Back to the deutschemark ?
May 28, 2019Martin Feldstein, a Harvard economist, wrote premonitorily in 1997 that the euro’s introduction “would exacerbate economic cycles by worsening unemployment in certain member states. Such economic woes would contribute to a crisis of confidence in the Union”. In fact, those who were convinced that the Union’s crisis since 2009 would only be a one-off…
The trade war won’t happen!
May 21, 2019China is not a bellicose nation. For it, war is a matter of developing excessive trading relationships. Put another way, for China,the defence of its economic interests is an extension of war. As for its nuclear option in the context of this trade war with the USA, it would be to shed itself of…
Europe’s disgust
May 15, 2019Brexit could have been a simple divorce between the UK and Europe, but the mounting tension between the British Parliament and the European Union is about to turn this separation into a much more deeply profound event. This is because Brexit won’t just have major geopolitical ramifications in modern history. In fact, after France’s…
The zombies of capitalism
May 9, 2019The policy of zero interest rates was crucial in avoiding total financial collapse following the subprime crisis, the credit crunch, and Europe’s sovereign debt psychodrama, just as it will play a major role over the next few episodes of stock market crashes and exacerbated volatility that hurts the real economy. On the other side of…
A major challenge of our time
April 21, 2019Where has inflation gone? While the US enjoys one of its longest periods of economic expansion, and while it is pretty much at full employment with its best figures for fifty years, inflation is nevertheless miniscule. Will it one day make its return to our developed nations of integrated economies?