Luis Pablo de la Horra
Luis Pablo de la Horra
Name
Luis Pablo de la Horra
Email
Country
Spain
Specialist subject
Economics
Website
Motto
Luis Pablo de la Horra is a Ph.D. Candidate in Economics at the University of Valladolid (Spain). He has been published by several media outlets, including The American Conservative, CapX and the Intellectual Takeout, among others.
Overview

What explains the emergence and strengthening of populism in Europe?

What explains the emergence and strengthening of populism in Europe?

The last years have witnessed the rise of populism all over Europe. Parties like Alternative für Deutschland in Germany, Rassemblement national in France, the Movimento 5 Stelle in Italy, or Podemos and Vox in Spain have gained importance in detriment of traditional conservative and social democratic parties. Despite their different (sometimes antagonistic) political and economic agendas,…

Rafael Leónidas Trujillo: the dictator who inspired a Nobel Prize

Rafael Leónidas Trujillo: the dictator who inspired a Nobel Prize

Most Latin American countries were ruled, at some point of the twentieth century, by dictators responsible for countless violations of human rights. Augusto Pinochet, who ruled Chile with an iron fist for almost two decades, was responsible for more than 3,000 executions and hundreds enforced disappearances. During Videla’s dictatorship in Argentina, between 13,000 and 30,000 citizens were…

The importance of financial education in today’s world

Categories:
The importance of financial education in today’s world

The financial roots of the 2008 crisis led many EU countries to develop national strategies aimed at improving the financial education of their citizens. In Spain, for instance, the National Securities Market Commission and the Bank of Spain launched a four-year financial education plan that has been renewed twice since 2008. Similar plans were implemented in Ireland, Denmark, France or…

Experiments in economics? You bet!

Categories:
Experiments in economics? You bet!

Every year around this time, the Royal Swedish Academy of Sciences awards the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel—aka the Nobel Prize in Economics. This year, the Prize went to Abhijit Banerjee, Esther Duflo and Michael Kremer “for their experimental approach to alleviating global poverty.” The three economists pioneered the use of randomized…

Does vaccine skepticism affect immunization rates?

Categories:
Does vaccine skepticism affect immunization rates?

Believe it or not, vaccination is still a controversial issue in many countries. Despite the scientific consensus that vaccines pose no risk to human health, some parents are still skeptical regarding their safety and effects, leading some of them to avoid vaccinating their children often based on pseudo-scientific arguments. Our World in Data recently released a series of articles that shed…

ECB's latest move won't work

Categories:
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

Categories:
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?

Categories:
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

Categories:
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?

Categories:
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?

Categories:
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

Categories:
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?

Categories:
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

Categories:

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…

What do Europeans think about immigration?

Categories:
What do Europeans think about immigration?

According to a recent YouGov poll, 4 out of 10 EU citizens think the benefits of immigration outweigh the costs[1]. Anti-immigration views are stronger in Sweden and Italy, with around 50 percent of respondents claiming that the costs of immigration are substantially higher than the potential benefits. In contrast, only one-third of the Polish population consider that immigrants have a negative…

Global migration numbers refute the rhetoric of invasion

Categories:
Global migration numbers refute the rhetoric of invasion

The anti-immigration wave that has emerged over the last years on both sides of the Atlantic has contributed to spreading a number of mantras about the migration phenomenon on a global scale. I myself have tried to debunk some of the myths related to the economic impact of immigrants on host countries, pointing out that most claims are either false or overstated (e.g., here, here, or here).…

What is Modern Monetary Theory? (III): A Critique

Categories:
What is Modern Monetary Theory? (III): A Critique

A widespread idea among MMT proponents is that governments can never go bankrupt. And to some extent, this is true. If a government has the capacity to print money, it can’t strictly default on its debt. Put differently, a government with monetary autonomy will always be able to print money to repay its debt in nominal terms. But at what cost? Imagine you buy a one-year government bond for…

What is Modern Monetary Theory? (II): A Critique

Categories:
What is Modern Monetary Theory? (II): A Critique

In the last months, the US political debate has revolved around a number of proposals (e.g., Bernie Sander’s Medicare for All or Alexandria Ocasio-Cortez’s Green New Deal) that, if materialized, would send government expenditures through the roof. Most economists would tell you that, in the long run, these new programs must be financed either by increasing taxes or by trimming other…

What is Modern Monetary Theory? (I): Some Ideas

Categories:
What is Modern Monetary Theory? (I): Some Ideas

In an interview last January, Democratic Party’s rising star Alexandria Ocasio-Cortez brought attention to so-called Modern Monetary Theory (MMT), a theory that challenges the foundations of mainstream economics regarding fiscal and monetary policy. Whereas its supporters see in MMT a solid theoretical framework with which to justify the expansion of public spending, its detractors argue…

What's behind skyrocketing rental prices in Spain?

Categories:
What's behind skyrocketing rental prices in Spain?

Last month, Spain’s prime minister Pedro Sánchez was forced to call a snap election after Congress rejected his budget proposal. The call for elections and subsequent dissolution of parliament has not, however, prevented Sánchez’s caretaker government from continuing legislating via executive orders. Even though these executive orders need to be approved by the…

Book Review: The Clash of Economic Ideas

Categories:
Book Review: The Clash of Economic Ideas

The Clash of Economic Ideas: The Great Policy Debates and Experiments of the Last Hundred Years By Lawrence H. White Cambridge University Press; 1st edition (April 9, 2012) 438 pages, $39.77   “I’m rather good at it”, said a young John Maynard Keynes to a friend shortly after starting the only economics course he would take in his life; a course that would turn a…

The Bank of Spain warns about the harmful effects of raising the minimum wage

Categories:
The Bank of Spain warns about the harmful effects of raising the minimum wage

On December 21 last year, the Spanish government issued an executive order whereby it increased the national minimum wage by an astonishing 22.3 percent for fiscal year 2019. Despite the potentially harmful effects that such a drastic measure could have on Spain’s ailing labor market (the unemployment rate is still over 14 percent), Sánchez’s government didn’t hesitate to…

A European Central Bank Primer (V): What does the ECB’s balance sheet look like?

Categories:
A European Central Bank Primer (V): What does the ECB’s balance sheet look like?

As the entity responsible for the conduct of monetary policy in the Eurozone, the ECB has a prerogative that no other financial institution possesses: it has an exclusive monopoly over the issuance of euros. As a result, the ECB’s financial position differs radically from that of any other bank in the Euro area. Today, we will take a closer look at the balance sheet of the Eurozone’s…

A European Central Bank Primer (IV): Transmission Mechanisms of Monetary Policy

Categories:
A European Central Bank Primer (IV): Transmission Mechanisms of Monetary Policy

In a previous article, I introduced the concept of long-term neutrality of money, which the ECB defines as a general principle according to which “a change in the quantity of money in the economy will be reflected in a change in the general level of prices. But it will not induce permanent changes in real variables such as real output or unemployment.” Put differently, monetary…

A European Central Bank Primer (III): Unconventional Monetary Policy Tools

Categories:
A European Central Bank Primer (III): Unconventional Monetary Policy Tools

In the second part of this primer, I discussed how the ECB conducts monetary policy with the aim of achieving price stability in the Eurozone. As shown, the ECB has historically employed three different policy tools to control the price level: open market operations (and more specifically, main refinancing operations), reserve requirements and the so-called standing facilities. Yet the 2010…

A European Central Bank Primer (II): How does the ECB conduct monetary policy?

Categories:
A European Central Bank Primer (II):  How does the ECB conduct monetary policy?

In a previous article, I talked about the objective, organizational structure and responsibilities of the European Central Bank. Today, I aim to discuss how the ECB conducts monetary policy in the Eurozone. But let me start by discussing more in detail the price-stability objective and why it matters. For the ECB, price stability means “a year-on-year increase in the Harmonized Index of…

A European Central Bank Primer (I): Objective, Organization and Responsibilities

Categories:
A European Central Bank Primer (I): Objective, Organization and Responsibilities

Next year marks the 20th anniversary of the Euro, the most important step in the European integration process since the Treaty of Rome. Six months prior to the official launch, the European Central Bank (ECB) was established to administer the new common currency in the eleven countries that originally designed the monetary union. Since then, eight more countries have joined the Eurozone, which is…

Why I don't vote

Categories:
Why I don't vote

The Stanford Encyclopedia of Philosophy defines democracy as “a method of group decision making characterized by a kind of equality among the participants.” In effect, democracy can be a useful mechanism for making collective decisions. For instance, an association representing the homeowners of a residential community can make the decision of renovating the pavement of a street after…

Spain's business sector has done its homework over the last decade

Categories:
Spain's business sector has done its homework over the last decade

One of the factors that triggered the financial and economic crisis in Spain was the excessive accumulation of debt in the private sector (both households and corporates). Between 2000 and 2007, the debt to GDP ratio moved from around 0.88 to 1.67, an astonishing increase taking into account that, in the same period, nominal GDP was growing at a compound annual growth rate of 6.6 percent (i.e.,…

Italy's Budget Proposal: A Fiscal Nonsense

Categories:
Italy's Budget Proposal: A Fiscal Nonsense

“Italy plans an obvious significant deviation of the recommendations adopted by the Council under the Stability and Growth Pact for 2019.” This was the clear message that Pierre Moscovici, Commissioner for Economic and Financial Affairs, sent the Italian Minister of Finance and Economy regarding the budget proposal elaborated by Italy’s coalition government for fiscal year…

Overview
© Values4Europe