This article analyses the disparity between the substance of what was announced and the language put around it by the ECB, mainly in the press release on its Monetary Policy…
What’s Wrong With
In a recent speech, the Vice Chair for Supervision at the Federal Reserve R.K. Quarles extensively cited F.A. von Hayek. Quarles highlighted Hayek’s argument on freely determined prices as crucial to convey knowledge across operators and enhance a functional economic order. By contrast, he argued, distorted prices harm economic performance. Rather surprisingly, however, Quarles concluded by endorsing another cut of the Fed Funds rates (this line of thinking also applies – mutatis mutandis – to the European context too). Indeed, interest rates are “prices”, and manipulated interest rates are also “biased prices”. So, what should we make of Quarles’ speech?
Many people share the opinion that Mafia is a typical Italian phenomenon, something about which only Italians should worry. This opinion is wrong. Data recently released by Europol show that thousands of criminal organizations active in Europe can be labelled as of mafia-type, with about 70% of them operating in more than one country.
In many European regions there is indeed evidence of a medium-to-high share of organized crime investments over the total.
Central banks play a prominent role in regulating modern economies. They enjoy a high reputation for their technical competence, and provide analyses and forecasts that influence the behavior of markets and the policymakers’ decisions, with emphasis on monetary policy. What if their forecasts are systematically biased?
In light of increasing income inequality and wealth inequality in many Western democracies, some social scientists believe that democracy is in jeopardy. Do the rich have a disproportionally high influence…
The recent paper “20 Years of the Euro: Winners and Losers” by Gasparotti & Kullas estimates that the introduction of the euro increased the pro-capita income in Germany and the…
So-called “neoliberalism” is nowadays more often than ever the scapegoat of anything wrong happening in contemporary democracies: from economic crisis to increase inequality, from the rise of populism to environmental…
“This state is not for free,” said the recently-elected leader of the Christian Democratic Union, Annegret Kramp-Karrenbauer, promoting a mandatory year of service in the military or in the social…
US President Donald Trump’s (in)famous tweet-storms have been used as anecdotal evidence of his volatility, anger, etc., but they are also an important source of policy information. After all, it…
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