Tag Archives: Buiter

Balassa-Samuelson Effect

This post considers the famous and somewhat contentious issue of Purchasing Power Parity (PPP), and the deviations from it explained by what is known as the Balassa-Samuelson Effect. In doing so it is hoped it will facilitate the understanding of … Continue reading

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Greek default and exit from the Euro-Zone: Is it a Good or Bad idea?

Since the beginning of the Euro-Zone sovereign debt crisis, talk about the pros and cons of a Greek default and of a Greek exit have been abundant. Economists Nouriel Roubini Rogoff and Feldstein are some of the most prominent standard … Continue reading

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ECB Balance Sheet: Composition, Scope and Limits

Having considered some of the inner workings of how commercial and investment banking works from the point of view of (1)Banking intermediation, Fractional Reserve Banking and Bank runs, (2) Asymmetries of Information, Overlending and the Output gap, and  (3) Leverage … Continue reading

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