What have we learned from Danish negative deposit rates?
I was going to do something on negative rates, but I’m busy and Nordea has written a good primer, and I still think me and Izzy’s post from July last year when they were introduced is pretty...
View ArticleDenmark’s experience with negative deposit rates
My piece for FT AV can be found here:FT Alphaville: What the Danish negative rate experience tells us.
View ArticleEurope’s problem is monetary, but that’s not all
Lars Christensen has a pretty good post on how Europe’s problems are not fiscal when you compare it to the US. He points out — rightly, I think — that the difference in recovery between the US and...
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Probability the Danish krone breaks its ERM-II peg
The IMF is out with its review of how the fund did on the whole Greece thing. Joseph Cotterill has a good write up.I’m still reading through it, but I do want to flack one thing. On page 32 is a proxy...
View ArticleNo, Robert E. Hall, that’s not actually the only problem
Matthew Klein has a good post taking down Robert E. Hall’s claim that reserves are lend out. It’s annoying that supposedly intelligent professors and central bank advisors don’t understand how the...
View ArticleHow to prevent fraud at banks
I was assigned a paper on the Shanxi Banks in the late Qing dynasty in China, and how they became the banking centre of their time. You can read the paper here, but I think it is worth flagging why...
View ArticleHow the Bundesbank did not have ‘negative equity’ in the 1970s
Over the years I’ve heard many talk about the story the Bundesbank having ‘negative equity’ in the 1970s. Since that’s not exactly what happened I thought I’d post on this. What happened was that the...
View ArticleGeorge Orwell on ‘history is written by the winners’
Via Brad DeLong here is George Orwell writing in February, 1944. As an economic historian(ish, to be) this is spot on, so here is me copy-pasting: When Sir Walter Raleigh was imprisoned in the Tower of...
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Atlas Shrugged in one chart
I spent the last weeks, among other things, reading Ayn Rand’s Atlas Shrugged. Then I spent a few minutes making a chart about it. Enjoyed the latter more. No. Not a fan.
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A theory on China
Looking at credit charts makes you a China bear, and here is the one that usually scares people*. It is a scary chart! Increases of private credit/GDP of this magnitude has generally meant trouble, EM...
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