Trump’s Tax Reform Dissected
Two weeks ago, the Trump administration presented a detailed version of one of Trump’s most important election promises: a tax reform. What are the consequences of Trump’s recent tax proposal for the US budget deficit and public debt?
Read MoreGentrification—and tourism—have become the new target in the never-ending social struggle in favor of the disadvantaged
Gentrification is the new monster to be fought. The term already has such bad press, that almost no one is willing to say anything in its favor (defending gentrification and defending neoliberalism are now almost interchangeable). Can gentrification get a break? Find out more here.
Read MoreItalian Banks Are The European Economy’s New Sword of Damocles
What are the Eurozone’s riskier banking systems? Which countries should be concerned in the face of a possible contagion effect of the Italian crisis?
Read MoreThe Accounting Cycle and Financial Bubbles: On the Current Indifference on Accounting Methods
As long as the stock market is booming, businesses get away with shady accounting practices. What do the recent cases of Netflix, Tesla and Alphabet suggest about what phase of the business cycle we are in?
Read MoreUS GDP Growth a Solid 3%, But Is Trouble Ahead?
The US economy is growing at a 3% annual rate. But are things as they seem?
Read MoreBank of Mexico: Bread Today, Hunger Tomorrow
This year Banxico will report operating losses and the Mexican government will no longer have another “gift” in 2018.
Read MoreHow OPEC Became Irrelevant: Traditional Oil Producing Countries Still Fail to Face the New Reality
The large traditional oil-producing countries — both OPEC and non-OPEC — are still catching up with the new reality. After deciding to extend the production cuts — agreed upon half a year ago — for another nine months, oil prices plunged below $50/barrel. Not quite the effect these oil giants were hoping for, but nothing out of the ordinary. After all, the fact is that supply and demand dynamics in the oil market have changed for good.
Read MoreDoes the Fed Follow Its Own Rules?
One of the most interesting discussions in the field of monetary theory concerns the role central banks play in the economy. There are multiple views regarding different issues: from questioning the mere existence of the central bank to the actual role a central bank should take.
Read MoreCheap Oil and Why OPEC Can’t Do Anything About It
Beyond the behavior of speculators or OPEC—which some consider a cartel, if there is anything we can learn is that the fall in oil prices responds to the forces of supply and demand. On the demand side, lower economic activity throughout the world, specially in China, has lowered the price of oil. Projections by the International Energy Agency show how demand weakened in 2014, although it rebounded in 2016.
Read MoreBeyond the Bitcoin Hype: Limitations of Bitcoin and Blockchain Technology
A lot has been written about the benefits of cryptocurrencies such as Bitcoin and blockchain technology. Blockchain technology will no doubt revolutionize the world. It should be no coincidence that one of our recent guests to Universidad Francisco Marroquín, Nick Szabo, has labeled blockchain technology “the Napster of finance.” While recognizing the value of cryptocurrencies and blockchain technology,
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