ALL BLOG POSTS
It is all over the media and everybody are talking are talking about it - the crisis in Cyprus.
A bit of fun for Saturday. Here is Dilbert on forecasting....
Over the weekend the news agencies reported that ECB chief Mario Draghi had called Italian president Giorgio Napolitano to "express concern that his resignation would leave Italy without leadership at a time of mounting tension in financial markets, exacerbated by the bank crisis in Cyprus" (quoted from Reuters). I think this pretty well illustrates what is wrong with the ECB's view of the world. Apparently the ECB thinks that it is in its mandate to actively influence the political outcome in different European nations. So it is no surprise that Mario Draghi and other European central bankers don't have any time for golfing.
Austrian economists often - rightly - stress that there are two types of deflation. The first type of deflation is monetary deflation, which tend to be quite damaging - at least according to sensible Austrians as Steve Horwitz - and second deflation caused by higher productivity. However, as there is both good and bad deflation it logically follows that there is good and bad inflation - something Austrians tend to downplay.
Earlier this week former UK Prime Minister Margeret Thatcher died. There has been written a lot about her achievements (and failures), but I just came across this (HT Vaidas Urba) very interesting quote by her Chancellor of the Exchequer Nigel Lawson:
While government bond yields have continued to spike in the PIIGS countries German government bond yields have continued to drop and 10% German yields are soon at 1%. This is by many seen as a testimony to the strength of the German economy and particularly to the strength of German public finances. However, is this really the story? I would argue it is not.
This is from Bloomberg today:
Some time ago I started my a little project to focus a bit on monetary reform in Africa - Project African Monetary Reform (PAMR). I am afraid I have failed to as much on Africa monetary matters as I would like. However, this post is an attempt to catch up a bit on that.