Negative rates: an economic curse?

November 6, 2019 0

  Companies that don’t pay interests on their debt are a like these students who never sit an exam: they somehow scrape by without any notable successes or accomplishments. The current level of rates should be encouraging investment because companies’ margins are much higher than the cost of capital, that is itself negligible. Even the…

By Michel Santi

Economists: can we trust them?

October 28, 2019 0

Chile is the only Latin American country that is a member of the OECD, and not long ago it was still being cited as an example to follow because of its success and economic recovery. It is, however, just the latest victim to date of a neoliberalism whose ravages have now become universal. Chile’s fall…

By Michel Santi

Inflation of prices, deflation of policies

October 10, 2019 0

So you think you understand inflation? Allow me to correct you because it is in no way the result of an unreasonable expansion of the money supply that translates into a rise in prices. This clichéd term of “inflation”, used unscrupulously by the detractors of central banks, by the prophets of misfortune whose commercial stock…

By Michel Santi

The People against the Economists

September 9, 2019 0

  In his time, Franklin Delano Roosevelt dismissed John Maynard Keynes, one of the most influential and brilliant economists of the 20th century, who was labelled an “unorthodox mathematician” by this president. In his farewell address, Eisenhower had warned his citizens against the technocrats in power, the same who were recently described by Emmanuel Macron…

By Michel Santi

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