Central banker: extinction of the species

July 9, 2019 0

  “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…

By Michel Santi

Have populists become conservatives ?

June 29, 2019 0

  There 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…

By Michel Santi

Back to the deutschemark ?

May 28, 2019 0

  Martin 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…

By Michel Santi

The trade war won’t happen!

May 21, 2019 0

  China 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…

By Michel Santi

Europe’s disgust

May 15, 2019 0

  Brexit 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…

By Michel Santi

The zombies of capitalism

May 9, 2019 0

The 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…

By Michel Santi