Forty-Five Years After the Gold Standard: A Failed Experiment

By Daniel Fernández on August 15, 2016

Unfortunately, there is nothing more permanent than temporary emergency measures. We are still living with a 45-year-old monetary experiment in which central banks have no direct link to gold.

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The Unbearable Lightness of the European Union

By Daniel Fernández on July 25, 2016

The economic performance in the UK for the coming years will depend on political decisions, many of which will not be based on the wellbeing of the citizens but rather on the wellbeing of the decision-making politicians and bureaucrats.

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Why Should Shadow Banking in China Concern Us?

By Roberto Morales Chang on July 21, 2016

The 2008 crisis was provoked by a credibility gap created by financial instruments used during transactions conducted by shadow banking entities. These instruments are called credit derivatives and examples include credit default swap (CDS) and asset backed securities (ABS).

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The European Central Bank Is Close to Committing Suicide – Here’s Why

By Olav Dirkmaat on July 20, 2016
ECB Is Committing Suicide

The European Central Bank embarked upon an enormous expansion of its balance sheet and is now running into its limits: there are simply not enough (eligible) assets to buy. How much time has ECB-chairman Mario Draghi left?

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Is Gold the Cure-all for the Fiat Money Problem?

By Clynton López on July 14, 2016

We see that gold has appreciated at a composite rate of 3.33% for the time period in question. Fiat money saw a composite depreciation of 3.14%, which means that gold experienced a composite net return of 0.19% after inflation.

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Spanish Economy Showing Strength in Light of Political Uncertainty

By Ángel Martín Oro on July 10, 2016

Year-on-year GDP growth during the first quarter of this year was at 3.4%, only one decimal less than what it was during the last quarter of 2015. Similarly, employment remains at strong levels, as well. But, how has this political uncertainty impacted foreign investors’ entry into the economy of Spain?

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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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The Fed’s Policies and their Consequences for Mexico

By Edgar Ortiz on June 16, 2016

The increase in interest rates implemented by the Fed and the resulting outflow of capital from Mexico may begin to affect the good pace in credit growth in the country.

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