Helicopter money (HM) is money printed by the central bank that is given to the people. Figuratively speaking, Mario Draghi1 would fly over the Eurozone and drop new €50 bills out of a helicopter to the population below. In the first part of this series, I explored the possible sources of HM. The current post looks at the political constraints that prevent the ECB from firing up the engines of its helicopters. Continue reading “Helicopter money part II: politics”
Month: May 2016
My favorite type of model
Scientists build models that capture the essence of some observed phenomenon. The models that I like best are strongly simplified. This in contrast to very complex and non-transparent models that try to replicate every aspect of reality. Good models allow us to gain insight into something we observe by using a limited number of key concepts. I use simple models to be explicit about the underlying assumptions and to be consistent. Continue reading “My favorite type of model”
Quiz: Can you spot the economic errors of Scott Sumner?
I was doing some research for a post about how the Trump presidential candidacy exposes the political biases of economists. But then I came across the blog of Scott Sumner. Professor Sumner has been teaching economics for over 25 years. Mr. Sumner is an advocate for a monetary policy called NGDP targeting. He also hates Donald Trump.
What I found stunning while reading Dr. Sumner’s articles are not his political views, but rather how poor his understanding of financial economics really is. As an exercise, I recommend that you take a look at these three articles. Can you identify his implicit assumptions and outright false claims? Continue reading “Quiz: Can you spot the economic errors of Scott Sumner?”
The annual general meeting of KBC
I had a new KBC experience today, after being a lifelong customer and having worked for 5 years at the bank-insurance group. This time not as a client or as an employee, but as a (co-)owner of the company. The annual general meeting of shareholders was organized in the company’s Molenbeek1 headquarters this morning. Continue reading “The annual general meeting of KBC”
De jaarvergadering van KBC
Na levenslang klant te zijn bij KBC en er 5 jaar gewerkt te hebben, ben ik sinds vandaag een KBC ervaring rijker. Niet als klant of medewerker, maar als eigenaar. Deze morgen ging namelijk de jaarlijkse algemene aandeelhoudersvergadering door in Brussel. Continue reading “De jaarvergadering van KBC”