Economics and politics - comment and analysis

Turkey and the mirage of monetary sovereignty

Cross-posted from Brussels Morning (https://brusselsmorning.com)
Turkey has fallen into a traditional carry-trade trap that is destabilising its currency; the structural solution to the challenge at hand would be to join a currency bloc.
The Turkish lira’s exchange rate has been in the international financial markets’ focus for months. …

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Gaming with Gamestop

Cross-posted from Brussels Morning (https://brusselsmorning.com)
The hype surrounding the “Gamestop” affair shows how little we still know about financial markets. But nobody asks why so many highly talented people with so much money are allowed to do nothing but make nonsensical bets day after day. …

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The great advantage of the European Monetary Union

Cross-posted from Brussels Morning
 
Many German economists still blame the European Central Bank (ECB) for doing what central banks normally do, namely providing monetary conditions that are conducive to growth and development.
Particularly damaging for the public debate on how to exit the corona recession are the constant warnings by many economists and some doomsday prophets that the aggressive monetary policy within the monetary union risks triggering imminent and dramatic inflation throughout Europe. …

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