Ricevo e pubblico da valente giornalista (mia moglie) As a journalist for Associated Press Television News based in Rome, I probably should have known what a spread is. But I must honestly and humbly admit that as of last summer, … Continue reading →
So the big problem seems to be that (European?) countries that are in the midst of the worse recession ever occurred after WWII adopt restrictive fiscal policies instead of expansive ones. Big mistake. We economists say these wrong policies are … Continue reading →
Here is depression for you. Depression is what unemployment creates. Beyond the wall, somebody must listen and care for these people. Economic policy for growth not for austerity. Ecco cosa fanno le recessioni. Disoccupazione. E depressione. Non si fanno manovre … Continue reading →
After seeing this graph do we still need to talk about fiscal restrictions? Those who tighten their budget right now are meant to experience larger output losses. Wow, amazing obviousness. Europe wake up. This nightmare has to end. But Italy, … Continue reading →
So here we go, Euro 2012 has selected which countries will play one against the other. We are talking about the coming European Soccer Cup, to be held next Summer in Poland and Ukraine. At least that Euro will be alive … Continue reading →
When Italy and Germany signed up for a monetary union they locked their exchange rate at a fixed unchangeable level. They did not however sign an agreement to lock also to a set level their relative competitiveness, in the world … Continue reading →
So we have established that money can’t save us from this crisis. Not the ECB (Eurobonds, EFSF and the likes even less), that is. It would be wonderful if by simply printing money, sheets of colored paper, we would be able … Continue reading →
Mi ricorda tanto la Signora Italia, si vendicherà di chi vuole ucciderla? It does remind me of Lady Italy. Will she finally get a revenge against he who wants to kill her? PS: For my English-speaking fans: the PIL (which … Continue reading →
So, where were we. At the issue of: 1) Does lowering rates by the ECB through expansionary monetary policy provide relief to the economy by boosting credit growth? Not necessarily and in this phase of the cycle not likely. Imagine banks … Continue reading →
Three questions for you that are lingering in my head with my proposed answers. 1. Can the euro area be saved by the Eurobond issuer or by the ESFS (European Stability Fund)? No. For 3 main reasons. 1) It takes time … Continue reading →