Articles by The Corner

About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.
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ECB's nefarious attitude: Mr Wolf is right

By Luis Arroyo, in Madrid | In case you needed tangible proof of the harmful role the ECB played in the crisis, in the FT, Martin Wolf writes an open letter to Trichet’s imminent successor to the presidency of the ECB, Mario Draghi. The letter is an excellent article that convincingly explains why the ECB should stabilize the debt markets of solvent countries such as Italy and Spain, which are the…


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Zero interest rate and other myths of the Great Depression’s U.S. monetary policy

By Miguel Navascués, in Madrid | H. Clark Johnson, professor at Yale University, identifies in a paper titled Monetary policy and the Great Recession, what he calls the six myths of U.S. monetary policy during the Great Depression. The paper not only explains the cause of the hole we’re in, but also the reasons why zero interest rate does not imply monetary expansion. In the latter case, the reason is simple:…


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Zero interest rate and other myths of the Great Depression's U.S. monetary policy

By Miguel Navascués, in Madrid | H. Clark Johnson, professor at Yale University, identifies in a paper titled Monetary policy and the Great Recession, what he calls the six myths of U.S. monetary policy during the Great Depression. The paper not only explains the cause of the hole we’re in, but also the reasons why zero interest rate does not imply monetary expansion. In the latter case, the reason is simple:…


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Sarkozy and Barclays: what a happy coincidence over Spain

At The Corner, we have a noticeable penchant for mixing news from the bright side, so we couldn’t let pass this occasion in which one of the core-Europe main actors and some British-based bank analysts have had warm opinions on the state of the Spanish economy (emphasis is ours.) According to this piece of reporting from the best-seller Spanish newspaper El País, at the end of the European Council meeting, French president…





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Markets love inflation

By Luis Arroyo, in Madrid | Look at the USA. In the graph above, left scale, the yields (spreads of Treasuries) of BB corporate bonds (red line), and B (green line). Right scale, blue line, inflationary expectations (type of bond at 10 years minus the same inflation protected). A functional relationship can be detected between the variations in inflation expectations and private bond yields. The higher the expected inflation, the…