Every now and then reports on falling hourly labor costs in euro periphery countries surface and make newspaper headlines. Headlines sometimes express falling labor costs as good news, and other times as bad news, depending on who does the interpreting. Falling labor costs may be considered good news because they indicate that it is cheaper…

The other day, a reporter asked me three questions about the current state of Spanish and European banking. Among all the areas of economic analysis, I find monetary economics and banking most interesting. In 1992, together with three coauthors, I published one of the first articles about general equilibrium economics that had the word “banking”…

Online social networks are one of the success stories of the Internet era. Facebook Inc. has roughly 1.15 billion monthly active users and its market capitalization of $131 billion is close to double the valuation of Goldman Sachs and approximately equal to the valuation of BP. An example of a direct value that users of online social networks…

The risk is too high therefore there will be an agreement. We will never arrive at default ...