Correa’s Ecuador Versus Peru

By Edgar Ortiz on March 29, 2017

It seems that 2006 was a long time ago—the year when Rafael Correa was not yet president of Ecuador. Nevertheless, there was an Ecuador before him: a troubled country that had seven presidents in only 10 years. With elections just around the corner, what economic model will mostly benefit Ecuadorians?

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The Poor Economic Criterion for a Remittance Tax

By Estefanía Luján Padilla on March 23, 2017

With the persistence of the new president of the United States to build a wall and his expectation to make Mexicans assume the cost, new creative initiatives to find a way to make them pay it are starting to emerge.

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The Astonishing Differences Between Spain’s 1993 and 2007 Crises

By Daniel Fernández on March 15, 2017

It seems that the echoes of Spain’s Great Recession will never end. Despite the country’s strong growth for at least two years, the general feeling seems to be that of a country consumed by the resonance of its own misfortune.

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This Is What Businesses Are Doing with Record Corporate Debt

By Olav Dirkmaat on March 13, 2017

Last year, non-financial companies issued $674.3 billion in corporate debt, a new record high. Low interest rates are wrecking the allocation of capital: the increase in debt is not used to invest, but rather to distribute cash to shareholders. However, there is one important caveat to this whole scheme that will threaten the U.S. economy.

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Understanding the Surplus

By Jorge Eduardo García García on January 26, 2017

The main problem arises when a government deficit comes with a primary balance deficit. The primary balance is the difference between government revenue and expenses, without taking into account the cost of the debt (interests).

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Why Didn’t the Depreciation of the Yen Help Exporters?

By Edgar Ortiz on December 13, 2016

Why didn’t the depreciation of the yen help exporters? Primarily, because large exporters are also large importers.

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Trump’s Victory Confirms the Peso’s Weakness

By Edgar Ortiz on December 1, 2016

As long as people are pessimistic about the future of the Mexican economy, the peso will continue to fall. It is still uncertain what Donald Trump’s government can and will do.

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Switzerland as a Protection Against Uncertainty: A Problem for Its Domestic Market?

By Edgar Fernández Vidal on November 28, 2016

When it comes to the equity market, the Swiss Market Index (SMI) continues to trade 10% below the figure for 2007. Despite the economy’s strong growth since then, the multiples at which the shares are currently listed are lower from those of 2007.

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Mexico’s Depreciated Peso and a Formula That Doesn’t Work

By Jorge Eduardo García García on November 21, 2016

Mexico’s position and its depreciated currency is not unique in the world; since 2014 Japan has also lost about 28% of the yen’s value against the dollar and its exports have fallen around 10% since.

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Nominal GDP Target for the United States?

By Clynton López on November 17, 2016

During the last seven years credit volumes did not grow as as in previous liquidity periods, despite having the federal reserve interest rates close to 0%. This means the US economy is not expanding.

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