The best commentary came from the Spanish daily Expansión. They gave us nine pages on Draghi’s measures and a headline from a statement made by Francisco González, president of BBVA: “” (note – I added the “all” to that statement). Draghi was already talking, a few months ago, of measures that needed to be taken in […]
Swiss Franc: It ain’t gonna happen
This colloquial phrase is used when something is considered impossible. That seems to be the case with the Swiss franc, which saw a major appreciation when the Swiss National Bank (SNB) announced it was floating its currency. It is an excellent example for one type of exchange rate. For obvious reasons, Switzerland is a major […]
The Economy Has Adjustment Mechanisms
We already knew that the economy tends to sort itself out. Not always, of course, since there are no fully automatic mechanisms, except in the field of physics. In human activities, the presence of human beings continues to be a source of irritation. Things would run so smoothly if we were all machines without our […]
Don’t Trust What Economists Tell You
Because we economists tend to view reality through the lens of economic models, but I did enjoy one of John H. Cochrane’s comments in his blog “Macro debates, the oped.” For quite some time now, due to the recent crisis, I have been experiencing a lot of hesitation about these model-filtered visions. Cochrane, a University […]
A New Monetary Policy?
After the injection of capital announced by Mario Draghi, President of the European Central Bank (ECB), I stopped to reexamine what I knew about monetary policy and what I believe I know now. What conclusion did I reach? At first I thought, “This is not the monetary policy that I studied and have taught for […]
