Articles by Miguel Navascués

About the Author

Miguel Navascués
Miguel Navascués has worked as an economist at the Bank of Spain for 30 years, and focuses on international and monetary economics. He blogs in Spanish at: http://

Oops, Angela did it again

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.

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Tobin Tax claims first 11 victims

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.

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The answer to the euro’s troubles is down under

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.

Brussels’ recipe for disaster

Behind the latest good news about better external deficit figures in Spain and the US, nominal GDP records demonstrate that Brussels is wrong: it isn’t time for savings when income drops dramatically. Spain needs credit to grow and repay its debts.

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How party politics ruined Spain’s public sector in two charts

Only when private sector hiring has showed some muscle, public jobs have fallen as a percentage of the total employees in Spain. The country’s public sector needs a downsize, and this should be easy to achieve: free the public administration from party politics interests.

Liquidity demand and the inflation horror

The Federal Reserve is hoarding Treasuries, interest rates in the US have plummeted and the inflation menace overhangs like a large knife above the American economy. Not at all, points out economist Luis Arroyo.

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US Achilles’ heel flashes a € sign on it

The US Federal Reserve can apply monetary measures as often as it wishes, but there is one factor that escapes its command and, nevertheless, stops markets from recovering. It’s called the euro.

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The Japanese liquidity trap

Economist Luis Arroyo peeks at Japan’s monetary policy with some sense of vertigo. Deflation has become a real threat for the country’s recovery and should be fought sooner than later.

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Bernanke despises inflation horror tales

Will inflation rise in the US? That is the expectation of investors. Is it due to the Federal Reserve’s monetary policy? You bet. But, economist Luis Arroyo concludes, eggs end up broken when making an omelette. Or when a central bank stimulates employment.