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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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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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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Inflation Target or GDP Target: More Ideology?

By Clynton López on November 2, 2016

Today, the central bank debate focuses on whether they should continue to use the inflation target as the main objective for monetary policies or if it should change to a nominal GDP target.

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The US Economy: Same as It Ever Was?

By Clynton López on September 5, 2016

The annualized quarterly GDP is growing, but it has been growing at a lower rate since the third quarter of 2015. Commercial and industrial credit is growing at a rate of an economy that is not expanding.

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Is the U.S. Stock Market Overvalued?

By Daniel Fernández on July 7, 2016

Is now a good time to invest in the stock market? Is the U.S. stock market overvalued? Unquestionably, since this drop and compared to the Great Recession, securities have risen a great deal in price.

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The Recent Rise in Delinquency Rates on Bank Loans Is Shocking (Is a New Banking Crisis Imminent?)

By Olav Dirkmaat on June 27, 2016

The delinquency rate on loans is key in understanding banking. What percentage of loans is overdue for payment? And is a new banking crisis imminent?

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Are Banking Industry Returns at Peril?

By Roberto Morales Chang on June 23, 2016

There exist two industries that did not manage to reach analyst estimates and experienced a sharp decline in earnings: oil and the banking industry. The European Central Bank has once again decided to continue with negative interest rates and contribute to credit expansion where lowering of interest rates and increasing in borrowing are facilitated.

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Sell In May

By Roberto Morales Chang on June 2, 2016

The efficient-market hypothesis becomes questionable with the phrase “sell in May and go away”, because if really the case, the market will have already reflected the available information and the value of the stock before May arrives.

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The U.S. and the Fall of the Federal Reserve

By Clynton López on May 26, 2016

Typically, it is believed that a nation’s central bank is the resolute decider of the economy of its nation. In today’s day and age, in the political-economic establishment of international bureaucracies, it is easy to envision the end of the world for some nations without the central bank. The Federal Reserve is the central bank of the United States. It serves as a decentralized entity broken up into 12 districts across the country and a Board of Governors in Washington D.C. Founded in 1913, its decisions throughout history have always proven to be controversial.

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