Trump’s Tax Reform Dissected

By Olav Dirkmaat on October 17, 2017

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?

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The Accounting Cycle and Financial Bubbles: On the Current Indifference on Accounting Methods

By Olav Dirkmaat on September 25, 2017

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?

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US GDP Growth a Solid 3%, But Is Trouble Ahead?

By Olav Dirkmaat on September 4, 2017

The US economy is growing at a 3% annual rate. But are things as they seem?

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Does the Fed Follow Its Own Rules?

By Daniel Fernández on May 22, 2017

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.

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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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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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