Upside-down economics’ defenders say that deficits create savings. The process never starts with deficit spending, but with the assets and wealth of the economy, which can be leveraged only to a certain extent and never decided by the borrower but the lenders. Borrowing is never the first step neither endless.
Continue reading Debt Is Not A Reserve Asset (Video)Negative Rates, The Destruction Of Money. Sweden Ends Its Experiment.
Negative rates are the destruction of money, an economic aberration based on the mistakes of many central banks and some of their economists who start from a wrong diagnosis: the idea that economic agents do not take more credit or invest more because they choose to save too much and therefore saving must be penalized to stimulate the economy. Excuse the bluntness, but it is a ludicrous idea.
Continue reading Negative Rates, The Destruction Of Money. Sweden Ends Its Experiment.The Economics of Decarbonization. World Economics Episode 10
There are plenty of comments about the process of decarbonization and climate change policies but… What are the challenges? What do we do with developing markets? Can we afford “no growth” strategies?
Effective climate change policies need to start with three pillars: Competitiveness, technology, and open market competition.
Continue reading The Economics of Decarbonization. World Economics Episode 10Is China A Better Trading Partner For Latin America Than The US?
Part of the economic debate in Latin America, particularly in Argentina after the elections, focuses on what type of financial and trade relationship is most convenient for the region, and several discussions talk about the merit of strengthening relations with China instead of the United States
Continue reading Is China A Better Trading Partner For Latin America Than The US?