BLOG MASH-UP OF THE WEEK

Everyday the blogosphere offers an enormous amount of in-depth analysis on any imaginable topic. The world of macroeconomics and economic forecasting is no exception. To keep themselves updated on the latest information, our in-house team of economists scan the world wide web and gather what they consider the most interesting, appealing, informative or just curious blog posts from experts in the field of global economics. Here’s the list of the Top 4 posts from this week. Check it out!

  1. Observing Greece – Klaus Kastner: ‘Emerging Markets – Greece on a Larger Scale?

    In Observing Greece, Klaus Kastner–a self-proclaimed viewer of Greece from the outside–gives interesting opinions regarding Greece’s current economic situation. In this post, Kastner states that, while living in Argentina and Chile from 1980 to 1987 he perceives the re-run of a movie seen a long time ago in the outflow of capitals in today’s emerging economies. However, he goes beyond and sees the same movie in what happened in Greece. With only a few examples, he provides a broad picture of Greece’s current situation. Nonetheless, he questions if these developments in emerging markets (and Greece) is a universal law which cannot be escaped from. – Ricardo Aceves

  2. The Baseline Scenario – James Kwak: ‘Missing the Point’

    In his latest blog, James Kwak talks about the recent decision of The Basel Committee to change the definition of the leverage ratio according to which total unweighted assets got reduced compared to the old definition. Kwak argues that there are two clear reasons why this decision is a bad move. First, shrinking the unweighted assets will reduce the percentage capital requirements which in turn will increase the risk. Second, according to Kwak the whole point of the leverage ratio is to safeguard against the ability of banks to game capital requirements based on risk-weighted assets. For this purpose, the definition of assets for leverage ratio purposes should include all of the bank’s traditional assets and everything that could fall in value. – Dirina Mancellari

  3. The Berkeley Blog – Yuriy Gorodnichenko: Ukraine: A battle for the future of Europe

    This article by Yuriy Gorodnichenko, from the UC Berkeley provides a broad description of the origins, the development and the possible outcomes of the current Ukrainian political crisis. Gorodnichenko sketches four possible outcomes and also advocates for the role of the international community in the achievement of a peaceful, politically sustainable and durable transition to a healthier democracy for Ukraine. – Enrique Jorge

  4. Noahpinion – Noah Smith: ‘What can Abenomics teach us about macro (so far)?

    Over one year has passed since Prime Minister Shinzo Abe started to implement an aggressive quantitative easing to revive the ailing Japanese economy and put an end to two decades of economic stagnation. In this post, Noah Smith argues that both overall and core inflation are on an upward trend as well as that the QE is not helping to improve net exports. Conversely, he affirms that QE is actually boosting consumption mainly as a result of inflated asset prices. – Ricard Torné

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