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ECB's latest move won't work

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ECB's latest move won't work

Draghi never disappoints. In his penultimate monetary-policy meeting, the still President of the ECB announced that the Eurozone’s central bank would soon resume the net asset purchase program in an attempt to get inflation back to the ECB’s 2 percent target after some months of lower-than-expected inflation. The Governing Council also agreed to lower the deposit rate to -0.5%,…

The case for legalizing paid surrogacy

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The case for legalizing paid surrogacy

Spain’s government has recently urged the Attorney General to investigate the operations of businesses offering surrogacy services. Despite not providing any evidence to support her claims, the Minister of Justice accused some of these businesses of child trafficking, criminal organization, money laundering, and false documentation. Surrogacy is unlawful in Spain, although companies…

What is that Phillips curve everyone is talking about?

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What is that Phillips curve everyone is talking about?

Federal Reserve’s Chairman Jerome Powell testified last month before the House Committee on Financial Services. As usual, Powell answered questions regarding the present and future of monetary policy. During the testimony, Democratic Congresswoman Alexandria Ocasio-Cortez asked Powell about the weakening of Phillips curve and its relevance for today’s monetary-policy decisions.…

Book Review: The Ethics of Voting

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Book Review: The Ethics of Voting

The Ethics of Voting By Jason Brennan Princeton University Press, 2012. 229 pages, $16.44 Voting in local, national, or supranational elections is in general seen as an act of good citizenship. Even though participation rates vary from country to country, a large percentage of the population in advanced democracies go to the polls quasi-religiously in every election. Yet few people reflect…

What can we expect from ECB’s new president Christine Lagarde?

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What can we expect from ECB’s new president Christine Lagarde?

Habemus praeses. Incumbent IMF chairwoman Christine Lagarde was recently nominated to become the next president of the ECB after the agreement reached by European leaders last week. The French politician will take up the position next November, bringing an end to Draghi’s eight-year mandate. Draghi’s presidency has been characterized by two key aspects. First, during his mandate, the…

Economic freedom and the decriminalization of homosexuality in Botswana

Economic freedom and the decriminalization of homosexuality in Botswana

Milton Friedman used to say that economic freedom is a necessary but not sufficient condition for political freedom. The case of China seems to prove the Chicago School economist right. The Asian country’s successful attempts to increase living standards through free-market policies over the last four decades haven’t been accompanied by reforms aimed at democratizing the country. Yet…

Who will succeed Mario Draghi as head of the ECB?

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Who will succeed Mario Draghi as head of the ECB?

The days of Mario Draghi as head of the European Central Bank are coming to an end. Next October, Draghi will cease to be one of the most powerful central bankers in the world after eight years in office. A hero for some, a villain for others, everyone agrees that his mandate will go down in history as one of the most decisive in the short history of the euro as he was forced to cope with a…

Mr. Trump, leave the Fed alone

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Mr. Trump, leave the Fed alone

One sometimes wonders if Trump’s irresponsible statements have other objective than to show his bold ignorance on economic and political issues. Last week, the US President lashed out at the Federal Reserve for its stance on monetary policy. In a nutshell, he complained about the dollar appreciating against the Euro as a result of Fed’s policies. This, according to Trump, undermines…

What is the place premium?

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What is the place premium?

Wage differentials within a country can be explained by factors such as work experience, years of education, or career choices. Yet things get more complicated when comparing wages from workers living in different countries. When we do so, we need to take into account an extra factor: migration barriers. This is exactly what economists Michael Clemens, Claudio Montenegro and Lant Pritchett do in…

Amancio Ortega or how anti-capitalist bias clouds the judgement of left-wing populists

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Amancio Ortega doesn’t make the headlines very often. Zara’s magnate, a self-made man who rose from being clerk in a clothing store to founding the largest fashion retailer in the world, has always avoided being in the spotlight, which has worked for him thus far. Yet when one is the sixth richest person on earth, it is inevitable to end up in the news once in a while. Ortega was…

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