So Long, Mr. Renzi.

14 febbraio 2014giulio zanella

Another Italian leader irremediably lost in transition. Overnight.

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Legalize Marjiuana? The costs.

14 maggio 2011David K. Levine e salvatore modica

There is a simple point about legalizing marijuana that seems not to have made it into the debate.

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Running (almost) on Empty

10 marzo 2011fabio scacciavillani

While attention is focused on the domino effect in the Southern Shore of the Mediterranean Sea, another domino piece in a different game is about to fall on the Northern Shore. At yesterday's auction for 1 billion euro Portuguese 2 year bonds the average interest rate was almost 6%. Meanwhile the 5 year rate is above 7.6%. A simple spreadsheet shows that if the current interest rates do not fall substantially Portugal's situation is unsustainable, i.e. the debt to GDP ratio will keep climbing relentlessly.

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Analysis From Tehran

18 giugno 2009redattori noiseFromAmeriKa

We received and gladly publish this analysis, from a reader whose identity, for obvious reason, we will keep anonymous.

Traduzione italiana disponibile cliccando sulla bandierina accanto al titolo

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How to improve the Geithner plan

2 aprile 2009sandro brusco

To avoid overpaying the toxic assets the plan should ask the bank managers to contribute, alongside the FDIC and the Fed, to the debt financing of private investors. To reduce the risks for the public the plan should ask the banks to put their earnings as collateral of the loans.

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The ''new'' Geithner plan

22 marzo 2009sandro brusco

The new plan to rescue banks, as described by the New York Times, looks a lot like all the older plans. The basic idea seems to be always the same: overpay the toxic assets using taxpayers' money.

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Mechanism design and the bailout

19 marzo 2009sandro brusco

It has been widely claimed that one of the main reasons of the current troubles in the banking sector is the inability to properly price some assets, in particular Mortgage Backed Assets. The managers of the banks claim that the assets are worth more than the price at which they can currently be sold. The claim implies that managers have better information about these assets than the general public, a plausible assumption. The only way to solve the problem is to eliminate the asymmetry of information. Bank managers should be forced to invest part of their wealth and their compensation in the assets that they claim to be worth more than the market is willing to pay. Chi volesse collaborare alla traduzione in italiano di questo post puo' farlo attraverso questo link

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Homework

12 marzo 2009michele boldrin

Why is former Fed Chairman Alan Greenspan as wrong as it gets in his analysis of the causes of the recent US asset (not just real estate, asset(s)) bubble?

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Welcome on board, Paul ...

9 marzo 2009michele boldrin

Yup, that's Paul Krugman. It must be a mistake, I know, but Paul Krugman seems to have understood what his long-time friend and "multiplier co-supporter" Bradford De Long could not understand last Wednesday night. Which is also what his friends in the Administration keep denying, much to our chagrin and our dismay.

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Obama is pulling a GW Bush

6 marzo 2009alberto bisin

The GW Bush is the last (next to last?) version of the oldest trick in politics: exploit random events to scare people into accepting some extreme version of your agenda they would have never accepted otherwise.

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