English

Hamas, a Palestinian terrorist organization that controls the Gaza Strip and Palestinian territories in the West Bank, attacked Israel out of Gaza in a brutal and cruel fashion. Over a thousand civilians have been slaughtered, including the most vulnerable, children, infants and the elderly. More than a hundred have been kidnapped as hostages. Gaza is […]

  One of Argentina’s most frequently raised objections to dollarization is the immediate concern of a potential bank run. If deposits were to be dollarized without a sufficient reserve of actual dollars, people would rush to withdraw their dollars from banks, precipitating a run. This fear is particularly concerning given Argentina’s current economic situation, where […]

The era of Western-led globalization has been replaced by a developing struggle between the United States and China. From a Western point of view, the major challenge emerges from a competition between nations that support liberal values and proponents of authoritarianism, with profound implications for the global economy. Mixing international trade with geopolitical rivalries is […]

  For more than three years now, all the basic rules of budgetary responsibility in the European Union have been effectively switched off. In March 2020, at the beginning of the Covid-19 pandemic, the EU activated the so-called general escape clause from the application of budgetary rules. But let us not be fooled. It has […]

A big and embarrassing challenge to DSGE models (Dynamic Stochastic General Equilibrium) is Alex Tabarrok’s latest post at Marginal Revolution. Tabarrok comments on a paper that finds two problems with new-Keynesian DSGE modeling. One is that this model/technique cannot predict real-world data very well. Put differently, when we ask DSGE not to forecast but to […]