Category Archives: Aides Memoire

Where you can find me these days

Posted on June 13, 2019 by fmpdea

As expected, I have moved to fresher pastures. I have been the Economics Editor at sister publications NordSIP and Ekonamik since the beginning of January 2019 and want to invite you to check out our content. Both publications are focused … Continue reading →

Posted in A € for your Thoughts, Aides Memoire, Banking, Blog Maintenance, Brazil, China, Current Events, ECB, Economic Concepts, Euro-zone Update, European Integration, European Interdependences, European National Politics, Finance, History, Indicators, Inflation, Media Coverage, News Round up & Comment, Political Concepts, Risk Scenario Analysis, Sovereign debt Crisis, UK, USA, Visions of the Political Future of Europe, Week Ahead, Weekly Bond Yield developments in the Euro Area, World Affairs | Leave a comment

How Income Inequality Leads to and Supports Political Capture

Posted on December 31, 2013 by fmpdea

As can be seen in posts pondering the past, present and or future nature of the Chinese, Brazilian or Ancient Roman political economy, capture is inevitably a recurring theme in my analyses. More specifically, I have recently found myself leaning … Continue reading →

Posted in Aides Memoire, Political Concepts, Risk Scenario Analysis | Tagged Brazil, China, Collective action problems, Elite capture, How does income inequality affect the likelihood of political capture?, Income Distribution, Income inequality, Mancur Olson, Regulatory capture, Rent Seeking, State capture, The Logic of Collective Action | Leave a comment

What Happened in 2012?

Posted on January 29, 2013 by fmpdea

This post takes a long overdue look at the monetary, financial, economic and political developments that took place during 2012 and the trends at the end of the year. It’s an exercise in taking stock and follows a relatively simple … Continue reading →

Posted in Aides Memoire, Banking, Current Events, ECB, Euro-zone Update, European Integration, European Interdependences, European National Politics, Finance, Indicators, Inflation, Sovereign debt Crisis, Uncategorized, USA, World Affairs | Tagged 2012, Balance of Payments 2012, Bank Lending Survey, Banking Union, BoE, BoJ, Bond markets, Bonds, Central banks balance sheet, Consumption 2012, Corporate Bond Bubble, Current Account Balance 2012, Deflation in Japan 2012, ECB, EU in 2012, Euro-zone in 2012, Europe in 2012, External balance of trade goods, External balance of trade services, External Trade Balance, Fed, Financial Account Balance 2012, Government debt, Government Expenditure, Holders of government bonds, Holders of government debt, Inflation 2012, Investment 2012, Japan in 2012, Lending to SMEs survey, Long Term Refinancing Operations, LTROs, Monetary base, Monetary supply, OMT, Outright Monetary Transactions, politics of Germany, politics of Greece, politics of Italy, politics of Portugal, politics of Spain, politics of UK, QE, Quantitative Easing, Sovereign Credit Ratings, UK in 2012, USA in 2012, Voter intention polls, What Happened in 2012, Where is the money going to?, Yearly Review | 1 Comment

A Brief Review of the Eurosystem’s TARGET2 Imbalances

Posted on November 5, 2012 by fmpdea

This post is a long overdue look at the infamous TARGET2 (im)balances, which are yet another symptom of the ongoing malaise in the Euro-Zone. I do not claim to make any new contribution in this post, whose motivation was exclusively … Continue reading →

Posted in Aides Memoire, Banking, ECB, Economic Concepts, Finance, Indicators, Inflation | Tagged Accounting, Assets, Balance of Payments, Banking Union, Banks, Buiter, Capital Flight, Central Banks, Clearing, Core, Corporates, Current Account Deficits, Deposit Facility, Deposit Flight, ECB, ECB Longer Term Refinancing Operations, ECB's Main Refinancing Operations, Equity, Euro, Euro-zone, Euro-Zone Banking Union, Eurosystem, Foreign deposit flight, Former Soviet Union Republic, Former Soviet Union Republics, FSURs, Germany, Households, ISA, Koning, Liabilities, LTRO, MRO, OMTs, Outright Monetary Transactions, overdrafts, Periphery, Ruble-Zone, Seignioreage, Settlements, Sinn, SOMA, Spain, Target2, TARGET2 imbalances | 5 Comments

(European) Debt Mutualisation: Lessons from the USA

Posted on August 17, 2012 by fmpdea

This post considers events in the history of the United Stated (USA) that involved the bailing out of state governments by the (newly created) federal government. This considerations are made because of their value as a template for a reform … Continue reading →

Posted in Aides Memoire, Sovereign debt Crisis, USA | Tagged (Dinner Table) Compromise of 1790, Alexander Hamilton, Centralisation, Collective action problems, Compromise of 1790, Debt Mutualisation in the USA, Decentralisation, Dinner Table Compromise, Europe's Hamiltonian Moment, European Federal movement, European Fiscal Federalism, European Fiscal Union, Federalism, Federalist Paper 7, Federalist Papers, Fly Paper Effect, Funding Act, Hamiltonian Moment, History of American Fiscal Federalism, Residence Act, Thomas Jefferson, USA, USA Debt between 1775 and 1789, USA-EU | Leave a comment

ECB Market Intervention: The Securities Market Programme (SMP)

Posted on March 2, 2012 by fmpdea

Update: As of September 6th, 2012, the SMP was discontinued and the assets held in its accounts were transferred assimilated by the Outright Monetary Transactions (OMT) accounts. For a preliminary assessment of the OMT, please check this blog post. Otherwise, … Continue reading →

Posted in Aides Memoire, ECB, Economic Concepts | Tagged Belgium, Debt Monetisation, ECB, EFSF, Fine-tuning Operations, Fixed Term Deposits, Germany, Government Bonds, Government debt, Greece, Ireland, Italy, Monetary Economics, OMO, Open Market Operations, Portugal, Qualitative Easing, Quantitative Easing, Securities Market Programme, SMP, Sovereign bonds, Sovereign debt, Sovereign Debt Crisis, Spain, Stabilisation, Sterilisation, Sterilised Debt Monetisation | 13 Comments

ECB Market Intervention: Covered Bond Purchasing Programme (CBPP)

Posted on February 22, 2012 by fmpdea

Having looked at the tools available to the ECB, at its balance sheet, and at the transmission of monetary policy into the interbank lending market.after considering financial market failures due to Fractional Reserve Banking, overlending and VaR, I would like … Continue reading →

Posted in Aides Memoire, Banking, ECB, Economic Concepts | Tagged Bank Lending Survey, Banking crisis, CBPP, CBPP1, CBPP2, Cointegration, Covered Bond Purchasing Programme, Covered Bonds, ECB, France, Germany, iBoxx, iShare, Italy, Monetary Policy Transmission, Portugal, Spain, Stabilisation | 10 Comments

ECB: Monetary Policy Transmission – Interest Rate Channel System, Reserves & the Interbanking Market

Posted on February 17, 2012 by fmpdea

Having looked at the tools available to the ECB and at its balance sheet, after considering financial market failures due to Fractional Reserve Banking, overlending and VaR, I would like to turn my attention to the actual operation of monetary … Continue reading →

Posted in Aides Memoire, Banking, ECB | Tagged Aides Memoire, Banking, Banking crisis, CDS, Collateral, Counter-party risk, Debt auctions, debt repurchases, Deposit Facility, ECB, EONIA, EUREPO, EURIBOR, interbanking, interbanking rates, intermediation, Liquidity Risk, LTROs, Marginal Lending Facility, Maturity, MRO, OIS, Overnight Index Swap, Reserve Base, Reserve Ratio, Reserve requirements, Reserves, Risk free interest rate, Sovereign Debt Crisis, Term Premium, Term Spread, Yield curve | Leave a comment

Leverage and Balance Sheet Management: Reserve Ratios and VaR

Posted on January 26, 2012 by fmpdea

Having previously considered how banks intermediate between investors and their investments, FRB and bank runs, and having shown that overlending is likely to be an equilibrium result of the financial market, I now turn my attention to how banks, among … Continue reading →

Posted in Aides Memoire, Banking, Economic Concepts | Tagged Aides Memoire, Assets, Balance Sheet, Banking, Banking crisis, Brokers/Dealers, Commercial banking, Credit Ratios, Housing, Investment Banking, Leverage, Liabilities, Monetary Economics, Value at Risk, VaR | 1 Comment

Market Volatility: with thanks to True Economics

Posted on January 23, 2012 by fmpdea

True Economics, has very interesting charts of 3-sigma-plus stock market volatility accross the UK, France, Germany, the US and world stock markets. To argue that the ongoing period of volatility represents a repricing of stock markets, associated with the financial … Continue reading →

Posted in A € for your Thoughts, Aides Memoire, Economic Concepts, Sovereign debt Crisis | Tagged Banking crisis, Mandelbrot, Normal Distribution, Sovereign Debt Crisis, Stable distribution, Stock Market Returns, Voltaility | Leave a comment