Economist Luis Arroyo reminds ECB governor Mario Draghi of his predecessor’s mistakes in blindly fighting inflation when it was economic growth what was, and still is, at stake.
Articles by Miguel Navascués
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Madrid is confident that external trade almost alone can make the economy to revive. In truth, the Spanish economy is adjusting. It is fair to say that Spain still has economic muscle, but the real picture isn’t good unless credit flows again.
There are as many ways to stop one more country to follow Greece’s steps as European politicians’ excuses not to act upon them. Economist Luis Arroyo names them one by one.
The US elections are surrounded by more uncertainty that ever before, and most of it comes from the Republican candidate. Mr Romney’s economic policies are an unknown-unknown.
In economist Luis Arroyo’s view, the Spanish Treasury would have made two mistakes that hit hard the economy: too high a VAT rate, and too expensive energy bills.
Economist Luis Arroyo rephrases the popular “we all are in this together” slogan: we all at the euro zone are heading towards recession in less than a year.
Economist Luis Arroyo describes the dimensions of the troubles the Spanish banking system faces and concludes that Chancellor Angela Merkel has, again, made the wrong moves during the last EU summit.
Even Milton Friedman would understand it if central banks cancelled their public debt holdings, economist Luis Arroyo proves. Do you think that’s crazy? The alternative is a long, painful economic rehabilitation, defaults and poverty.
Past performance casts doubts over what European governments will achieve by implementing the Tobin Tax on financial transactions. Funding costs for banks and their clients, though, will surely increase.
Don’t worry about the external deficit. The Spanish economy needs permanent capital inflows and that isn’t really a problem when the country can generate income to cover interests and dividends. Look at Australia, suggests economist Luis Arroyo.