Bryan Caplan and David Henderson

Eurozone crisis

A Category Archive (52 entries)

Scotland and the irrational media

Eurozone crisis
Alberto Mingardi
Scotland won't secede: 54% voted for 'no', 46% voted 'yes'. The composure with which the losers conceded tells you something about this referendum. The secessionists had remarkably little complaint with the state of the Union. They did not push for... MORE

Clive Crook on Scotland

Eurozone crisis
Alberto Mingardi
Clive Crook has a taste for contrarian views that makes him well worth reading. He wrote two articles on Scottish independence. Here he emphasizes the reasons why Scotland shouldn't go for secession, though he points out also the dishonesty on... MORE

Will Scottish secession be a disaster?

Eurozone crisis
Alberto Mingardi
Is secession a recipe for disaster? There seems to be an emerging consensus on the point, at least in the case of Scotland. I shall confess I am biased in the opposite direction. I read this piece by Murray Rothbard... MORE

Is the French public debate evolving?

Eurozone crisis
Alberto Mingardi
A few weeks ago I participated in the "Economic Ideas Forum" in Nancy, France. It is a fascinating event, organised by the local Chamber of Commerce, in synergy with other organisations, including the Institut Economique Molinari, the French think tank... MORE

An Internet secession so far

Eurozone crisis
Alberto Mingardi
The Scottish referendum is scheduled for September 18. Its implications are wide ranging. Most people are convinced that the Scots will ultimately vote 'no,' thus preserving their Union with England. But if the unlikely scenario of Scotland going for independence... MORE

A(nother) Colbertian in Brussels

Eurozone crisis
Alberto Mingardi
Jean-Claude Juncker has been elected President of the European Commission with 422 out of 729 votes in the European Parliament (he needed 376). Juncker was one of the "Spitzenkandidaten" for the European elections, namely the one chosen by the Popular... MORE

Frank Furedi on euroskepticism

Eurozone crisis
Alberto Mingardi
Sociologist Frank Furedi frequently contributes to Spiked, one of the most interesting on line publications. He is always well worth reading, but I would particularly recommend this article of his on the last European election. Furedi calls out attention on... MORE

OpenEurope on the European vote

Eurozone crisis
Alberto Mingardi
OpenEurope has published a thoughtful flash analysis of the European elections. It is well worth reading (here). The two key points: - Share of anti-EU and anti-establishment vote is slightly higher than expected with such parties collectively on course to... MORE

Europe vs Uber

Eurozone crisis
Alberto Mingardi
Uber is having a hard time in Europe. The San Francisco company has started its operations in quite a few cities now. This fact has raised protest by taxi-drivers (as any other human being, they do not like new competitors).... MORE

Is Venice going to secede?

Eurozone crisis
Alberto Mingardi
Two weeks ago, an online referendum on the independence of Veneto has gained the attention of the international media. This is not surprising: Venice is one the marvels of the world, and people rightly care for its future. The referendum's... MORE

Never reason from an inflation rate change

Macroeconomics
Scott Sumner
In a new post, Tyler Cowen is skeptical of Paul Krugman's claim that higher inflation hurts the rich. Brad DeLong also expresses some skepticism. I agree with Cowen and DeLong, but would like to quibble with this comment in... MORE

The European Union versus the e-cig

Economics of Health Care
Alberto Mingardi
In December last year we discussed the new European directive on tobacco products. It has been approved, and includes, as Andy Coghlan reports on the New Scientist, "strict conditions on how e-cigarettes can be formulated, advertised and sold". Now, if... MORE

An update on Mr. Renzi

Eurozone crisis
Alberto Mingardi
In a comment to my blog post on Mr Renzi, the new Italian prime minister, Shane L has posed a very interesting question: I wonder if, in the same sense that only Nixon could go to China, only a respected... MORE

Taxes are all around

Economics and Culture
Alberto Mingardi
The Lithuanian Free Market Institute has long been one of the most energetic think tanks in Europe. They are also one of the few free-market organizations, among the European ones, that have a thoroughly broad and diversified base. Lithuania is... MORE

Who is the Italian prime minister this week?

Eurozone crisis
Alberto Mingardi
Mark Calabria, the Director of Financial Regulation Studies at the Cato Institute, has tweeted "Who is the Italian prime minister this week? Does it matter?". As the family name may suggest, Mark has an Italian background - and I gather... MORE

What consequences for the Swiss referendum?

Eurozone crisis
Alberto Mingardi
Bryan Caplan has a characteristically brilliant post on the Swiss referendum. He links a tweet by Paul Haydon that shows that the areas with more immigration have been less supportive of closing borders. One crucial point of the referendum is... MORE

How not to privatize

Eurozone crisis
Alberto Mingardi
The other day my colleague Massimiliano Trovato and I had an op-ed in The Wall Street Journal Europe, on the forthcoming "privatization" of Poste Italiane, the Italian postal service. I've always thought that the old Milton Friedman mantra on tax... MORE

German President defends the market economy

Eurozone crisis
Alberto Mingardi
Germany's President, Joachim Gauck, has given a talk at the Walter Eucken Institute. The Eucken Institute keeps the tradition of the Freiburg school of economics alive. For an introduction to Ordoliberalism, you may give a look to this paper by... MORE

Thank you for vaping

Eurozone crisis
Alberto Mingardi
The war against tobacco has been fought vigorously by the European Union. Lately, the European Commission has been pushing for changing the Tobacco Products Directive, in an even more restrictive sense. To dissuade young people from picking up smoking, health... MORE

European Union, which steps forward?

Eurozone crisis
Alberto Mingardi
An almost invariable mantra of European politics is that Europe needs "an ever closer Union". Political centralization is commonly considered the only way out of the crisis - meaning, first of all, centralization of fiscal policies, as an all-powerful Brussels... MORE

A central bank for Scotland?

Eurozone crisis
Alberto Mingardi
2014 will probably be the year when Scotland and Catalonia vote for their independence. The Catalonian referendum is strongly opposed by the Spanish government, and a date hasn't been set yet. In this old op-ed for the New York Times,... MORE

Angela Merkel has won the German elections by a landslide, but as she did not reach an absolute majority, she is still struggling to form a government. It is a bit paradoxical, but Merkel's electoral triumph, which resulted also in... MORE

Against crony capitalism, Italian style

Eurozone crisis
Alberto Mingardi
The Italian Post service is joining the shareholders of Alitalia, the "national" air carrier. I've written on this odd move of the Italian government here. Today I co-signed an appeal to the Italian government, to resist this protectionist temptation. The... MORE

Who is Mrs Merkel?

Eurozone crisis
Alberto Mingardi
Mrs Merkel won the German elections by a landslide, gaining an impressive 41.5% of votes. However, the most notable unintended consequence of Mrs Merkel's triumph is that both the other right-of-the-center parties, the liberals of the FDP and the newly... MORE

The stupidest letter a US Ambassador ever received

Eurozone crisis
Alberto Mingardi
The following letter (kindly translated into English by my colleague David Perazzoni) was sent to the American Ambassador in Rome by seven Italian MPs (Michele Anzaldi, Marina Berlinghieri, Matteo Biffoni, Luigi Bobba, Lorenza Bonaccorsi, Federico Gelli, Ernesto Magorno), who apparently... MORE

Bitcoin and libertarians in "the great machine"

Eurozone crisis
Alberto Mingardi
Bitcoin is now recognized as financial instrument under German banking rules. The Guardian writes: Germany's ministry of finance has formally recognised the digital currency Bitcoin as a "unit of account" which can be used for private transactions - meaning that... MORE

The idea that "competition among states and regions [...] lays the groundwork for technological progress and economic growth" is almost taboo in the European debate. Perfectly reasonable people, that may favor competition elsewhere, apparently came to the conclusion that competition... MORE

What is a 'fiscal union'?

Eurozone crisis
Alberto Mingardi
The other day I attended a conference on the euro-crisis, and I questioned two of the speakers on what they meant for "fiscal union." Sometimes, words become cozy, people use them rather liberally as they become fashionable, but we lose... MORE

How do you say "Austerity for Liberty" in Greek?

Eurozone crisis
Alberto Mingardi
In one of his most thought-provoking posts ever, Bryan Caplan argued that Instead of pushing for "constructive" free market reforms, libertarians should doggedly focus on austerity: opposing spending increases, and pushing spending cuts. (...) If libertarians have any political success,... MORE

Shall Europeans elect their President?

Eurozone crisis
Alberto Mingardi
There is a certain consensus, among the European ruling classes, that the EU's next step should coincide with the democratic election of its number one official. However, interviewed by Der Spiegel, Mrs Merkel recently declared that she would be... MORE

Speaking of Foreign Languages

Eurozone crisis
Arnold Kling
How do you say "Have a nice day" in Japanese or French?... MORE

Eurozone: Markets Applaud Latest Can-Kicking

Eurozone crisis
Arnold Kling
Sony Kapoor writes, Setting up an agency that is capable of resolving (shutting down, selling or recapitalizing) banks is perhaps the most urgent part of such a banking union and can be done independently from pooled deposit insurance or common... MORE

Eurozone Crisis: what is the solution?

Eurozone crisis
Arnold Kling
Friends sometimes ask me this question. My answer is rather harsh. The problem is that some governments and some banks are insolvent. When a financial institution is insolvent, its liabilities must be taken over by a solvent institution. The solvent... MORE

Perspective on the Eurozone Crisis

Eurozone crisis
Arnold Kling
John Cochrane writes, The euro was explicitly set up as a currency union without a fiscal union. (And it turned in to one without a bank regulatory union.) That can work, a fact which practically all commentators ignore. The central... MORE

The Bankers' View

Eurozone crisis
Arnold Kling
Robert RubinRoger Altman writes, How can Europe pull back from this brink? It needs to immediately install a series of emergency financial tools to prevent an implosion; and put forward a detailed, public plan to achieve full integration within six... MORE

Sentences to Ponder on the Eurozone

Eurozone crisis
Arnold Kling
1. From Tyler Cowen. It probably is about time to judge the euro zone as a failed idea -- and rarely is it wise to double down on failed ideas. 2. From David Zervos via John Mauldin's newsletter (you may... MORE

Thoughts on Spain

Eurozone crisis
Arnold Kling
1. The Washington Post pushes the "austerity" narrative. The economic debate consuming Europe comes down to the question of whether struggling countries should choose austerity by clamping down on government spending to rein in unsustainable deficits or pursue growth stimulated... MORE

Maladjustment

Finance: stocks, options, etc.
Arnold Kling
1. Todd Zywicki writes, the average home in foreclosure has been delinquent for 674 days--a delay that has doubled since the exposure of the robo-signing scandal ground the foreclosure process to a halt. In Florida, the time from default to... MORE

Euro-Optimism

Game Theory
Arnold Kling
C. Fred Bergsten and Jacob Funk Kirkegaard (BK) write, There are only two alternatives. Europe can jettison the monetary union. Or it can adopt a complementary economic union. This brief argues that, for all the turmoil, Europe is well on... MORE

Today on the Eurozone Crisis

Eurozone crisis
Arnold Kling
Tyler Cowen writes In the meantime, doesn't every euro -- a few sticky grannies aside -- leave the Italian banking system? Presumably the new lira is not pegged at 1-to-1 forever. He is referring to an op-ed by Robert Barro... MORE

Today on the Eurozone Crisis

Eurozone crisis
Arnold Kling
First, listen to Scott Sumner argue that monetary policy in the U.S. was unintentionally contractionary in 2008. Then, read Izabella Kaminsky on monetary policy today in Europe. the central bank transmission mechanism has been compromised because expansion or contraction of... MORE

Today on the Eurozone Crisis

Finance: stocks, options, etc.
Arnold Kling
Johnn Cochrane makes the case that bank regulators are not up to the job. The last generation of smart MBAs got around capital requirements by pooling risky assets into "AAA" securities that had lower risk weights, and then putting those... MORE

Today on the Eurozone Crisis

Eurozone crisis
Arnold Kling
Tyler Cowen writes, Dodd-Frank left questions of capital and leverage largely to the Basel III international banking agreements, the second piece of the new financial regulatory architecture. Basel III, like its predecessors Basel I and Basel II, encourages banks to... MORE

Today on the Eurozone Crisis

Eurozone crisis
Arnold Kling
1. James Hamilton reviews the emergency lending of the Fed from 2008-2011. Phase 4, then, could turn out to be a return to emergency lending as the Fed tries to contain collateral damage from the unfolding European drama. 2. Olivier... MORE

Eurobanking

Finance: stocks, options, etc.
Arnold Kling
Hyun Song Shin writes, My recent research suggests that the 'global banking glut' may have been more culpable for the crisis than the 'global savings glut' I reported on his paper when I first read it (I believe Tyler Cowen... MORE

Today on the Eurozone Crisis

Eurozone crisis
Arnold Kling
1. Richard Milne in the Financial Times. the biggest worry is that European leaders appear to be repeating one of the original sins that led to the eurozone crisis in the first place: forcing banks and insurers to load up... MORE

Today on the Eurozone Crisis

Eurozone crisis
Arnold Kling
Tim Worstall writes, We're going to be gearing the eurozone banking system up on sovereign debt. Which means that if anyone does in fact default then the eurozone banking system really will go bust, crash and burn in a great... MORE

Today on the Eurozone Crisis

Eurozone crisis
Arnold Kling
An entire article on the two-drunks problem. The European Banking Authority ordered the region's banks on Dec. 8 to raise 115 billion euros ($154 billion) by June. Faced with dwindling profits and unable to tap capital markets to sell new... MORE

Today on the Eurozone Crisis

Eurozone crisis
Arnold Kling
One report on the latest accord: According to a statement issued after the meeting broke up, governments participating in the agreement will need to have balanced budgets -- which is counted as a structural deficit no greater than 0.5 percent... MORE

Today on the Eurozone Crisis

Eurozone crisis
Arnold Kling
Perry Mehrling writes, Now comes the latest deal over eurozone fiscal rules, presumably the deal that ECB President Draghi asked for last week. It is a deal about sovereign budget discipline. But if I read Draghi's speech right, we should... MORE

Today on the Eurozone Crisis

Eurozone crisis
Arnold Kling
Felix Salmon writes, The best case scenario is that those countries bite the bullet and restructure their debt now, since to delay is to make any restructuring much more painful and expensive than it needs to be. Pointer from Mark... MORE

Today on the Eurozone Crisis

Eurozone crisis
Arnold Kling
First, two pointers from Mark Thoma. Jeff Frankel calls this the hour of the technocrat. Obvious disadvantages of some technocrats include lack of managerial experience, lack of perceived legitimacy, and lack of a domestic political powerbase. Monti and Papademos both... MORE

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