Sign in
Sign in
Recover your password.
A password will be e-mailed to you.
Should current-account surpluses in the Eurozone be reduced?
Current-account deficits have caused problems in several Eurozone countries, but surpluses are also an issue. This column argues that surpluses are detrimental to the welfare of the population to the extent they are driven by structural…
The Fed confirms its move to forward guidance and permanent zero
Recently, I wrote a series of posts predicting that the Fed would give up on QE and move toward forward guidance in order to be able to normalize policy. Nevertheless, I have also been saying for quite some time I believe the US zero rate…
Household formation and affordability are headwinds in the US housing market
While the US housing market remains relatively robust, it is likely to face a couple of headwinds going forward. One is the lower affordability index. The other is the recent slowdown in net household formation.
Paul Krugman, Nick Rowe and an Endogenous Money Model
Paul Krugman's use of the unexpected phrase 'endogenous money' has motivated me to publish, ahead of schedule, a model comparing Loanable Funds to Endogenous Money that I promised to provide in the discussion on Nick Rowe's blog.
More on Germany’s deflationary bias
Martin Wolf has written a column in the FT with which I agree, claiming that Germany is a weight on the world. The essence of his argument is that Germany’s export-led growth model is a ‘beggar-thy-neighbor’ policy in a world short of…
Why an eventual Grexit is still unavoidable
Europe is in the sweet spot right now, with recovery looking like it has taken hold. Greece remains an outlier. The question is what will happen to Greece over the medium- to- long-term. I believe the answer is an exit from the euro zone.…
Financial obligations rising for renters, falling for homeowners
With wages stagnant, the proportion of income going into rent is on the rise. While homeowners have been able to reduce their monthly payments to the lowest level in decades via mortgage refinancing and cutting back on credit card usage,…
More on growth in Euroland, the U.S. and the U.K.
I want to pick up where I left off yesterday and highlight the growth dichotomy between Euroland on the one hand and the U.S. and the U.K. on the other. Yesterday I wrote that the risk is to the upside in the U.S. (and the U.K.) if…