Fiscal policy

The clash of the curves

After yesterday US congressional leaders agreed on a relief package for the US economy of historic proportions, another critical milestone has been passed. The fiscal and monetary firewalls that have been erected should be sufficient to allow the economy to hail from a sudden slowdown in activity. However, there is still a fundamental unknown to … Continued

ETFs, financial stability and the invisible hand

Warnings about the risk that the widespread use of ETFs entails for the proper functioning of financial markets are widespread. The criticism, no matter whether genuine or motivated by interests, is fundamentally based on two complementary narratives: the “dumb money” distortion and the “house of cards” risk. The first points to the misallocation of capital … Continued