Luis Garicano 🇪🇺🇺🇦 @lugaricano@respublicae.eu
Unofficial automated mirror. No copyright asserted. ∎ Economist. Back at LSE as a Professor at @LSEPublicPolicy Summer 2023. Non-resident Fellow @bruegel_org. Recovering MEP. Currently @ChicagoBooth.
Joined Apr 2022
18 months after the first emissions of NextGenEU debt, the market does not consider European Debt as a safe asset. Today @GBonfantiEcon and I have a piece in Bruegel where we set up the puzzle.
A thread- one figure per fact
1/6
https://www.bruegel.org/blog-post/do-financial-markets-consider-european-common-debt-safe-asset
🐦🔗: https://n.respublicae.eu/lugaricano/status/1600935891790598144
@Breakevennnnnnn @GuntramWolff Please read it, we explain it.
🐦🔗: https://n.respublicae.eu/lugaricano/status/1600920758385266688
@Breakevennnnnnn @GuntramWolff There is joint and several liability.
You can "go against Germany" for the entire debt if a country does not pay.
🐦🔗: https://n.respublicae.eu/lugaricano/status/1600920641288298498
@Breakevennnnnnn @GuntramWolff No, that is not what he means. I suppose looking at the charts is too much to ask?
🐦🔗: https://n.respublicae.eu/lugaricano/status/1600916646478376960
RT @GuntramWolff: "Only when the tides goes out do you discover who has been swimming naked." As ECB liquidity flood ends, @lugaricano shows how EU debt is now prized similarly to Spain and not to Germany. No safe asset status. https://www.bruegel.org/blog-post/do-financial-markets-consider-european-common-debt-safe-asset
🐦🔗: https://n.respublicae.eu/lugaricano/status/1600913076819496960
In this @Bruegel_org piece, @GBonfantiEcon (a fabulous @Columbia_Biz @columbia_econ PhD student) and I show that, since @ecb stopped buying, none of the different EU debt is treated a safe asset-in spite of joint and several liability from EU countries. https://www.bruegel.org/blog-post/do-financial-markets-consider-european-common-debt-safe-asset
🐦🔗: https://n.respublicae.eu/lugaricano/status/1600912955931242497
The Brexiters convinced the UK people that the reason the UK was stagnating was Europe. Now that it is all in their hands, people can see the truth. Today: 267m spent by one branch or government to ask another branch of government for permission to build a road.
RT @Sam_Dumitriu: It cost National Highways £267m to prepare a planning application to get permission to build 23km of road.
The road, which would connect Essex and Kent, still hasn't gained planning pe…
🐦🔗: https://n.respublicae.eu/lugaricano/status/1600633402608480256
When a blue chip asset manager is compelled to limit withdrawals, it is incurring a heavy reputational cost. Expect to see a lot of distressed REIT and Private equity portfolios.
The question of course is: will the contagion to real economy and banks be limited( like w/ Crypto)?
RT @RobinWigg: “In a way, Breit is some of our best work." https://www.ft.com/content/195d6a3a-a320-46ec-b879-c7753d1bf205
🐦🔗: https://n.respublicae.eu/lugaricano/status/1600627771285413888
Highly recommended!
RT @JohnHCochrane: Fiscal theory of the price level discount coupon (this time with picture) https://press.princeton.edu/books/hardcover/9780691242248/the-fiscal-theory-of-the-price-level
🐦🔗: https://n.respublicae.eu/lugaricano/status/1600495644594126849
RT @JohnHCochrane: Fiscal theory of the price level discount coupon (this time with picture) https://press.princeton.edu/books/hardcover/9780691242248/the-fiscal-theory-of-the-price-level
🐦🔗: https://n.respublicae.eu/lugaricano/status/1600495379182768130
RT @LUISENRIQUE21: No ha podido ser, lo hemos intentado pero no ha sido suficiente. Sentimos no haberos dado una alegría… así es el fútbol y la vida…a levantarse.
🐦🔗: https://n.respublicae.eu/lugaricano/status/1600251603356770304
Until when will the EU let Orban blackmail us?
Right now he is blocking:
- €18 bn aid to Ukraine
- Finland and Sweden NATO entry
- Implementation of OECD agreement on 15% minimum tax rate
It's time to put an end to Orban's blackmail and protect the EU's strategic priorities
🐦🔗: https://n.respublicae.eu/lugaricano/status/1600110007126986753
¡Feliz día de la Constitucion!
España merece que luchemos por la memoria de nuestro momento de concordia, unión y perdón, y por una Constitucion que incluye a todos
Yo lo pasaré dando hablando sobre el futuro de Europa @princeton https://economics.princeton.edu/events/luis-garicano-columbia-university/
🐦🔗: https://n.respublicae.eu/lugaricano/status/1600103053851607042
In @Princeton to talk about the future of Europe: fiscal rules, monetary financing and the single market. https://economics.princeton.edu/events/luis-garicano-columbia-university/
🐦🔗: https://n.respublicae.eu/lugaricano/status/1600101696343920640
Congratulations Mr @ZelenskyyUa . You are much more than the peson of the year: you are a true hero.
RT @FinancialTimes: Ukraine’s president Volodymyr Zelenskyy is the FT’s person of the year 2022. The 44-year-old has earnt a place in history for his extraordinary display of leadership and fortitude https://www.ft.com/content/9599247f-c3cb-4d3c-a0b6-771f0aac8699
🐦🔗: https://n.respublicae.eu/lugaricano/status/1599969482822205440
In 2017 obligatory car seat laws led to a permanent reduction of approximately 8,000 births and 145000 since 1980.
(Some parents with two children in car seat age don't get third because she does not fit in the car.) https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3665046
🐦🔗: https://n.respublicae.eu/lugaricano/status/1599828537204436992
Wow! The limits of AI- a dinosaur civilisation, explained with all confidence.
RT @emollick: Outside of your field you should be very careful. “Creative AIs” can seem completely certain about results, and getting them to switch from sane to hallucinatory is a difference of a couple words.
Since we mistake confidence for accuracy, a confident computer may be a problem.
🐦🔗: https://n.respublicae.eu/lugaricano/status/1599796672648790017
RT @berlin_bridge: @EmmanuelMacron must stop drinking putin’s Koolaid & spraying it at the press. russia already has security guarantees. It’s called the UN Charter. If they stop killing ppl & attacking other states, they have nothing to fear. In the meantime, we must defend ourselves against them.
🐦🔗: https://n.respublicae.eu/lugaricano/status/1599428274626535424
Agree!
RT @R2Rsquared: This "blog post" on prospects for Euro-area inflation by Philip Lane @ecb is deeper and more thoughtful than many full-length journal articles. (A reflection of the strength of @ECB_Research) Strongly recommended reading.
https://www.ecb.europa.eu/press/blog/date/2022/html/ecb.blog221125~d34babdf3e.en.html
🐦🔗: https://n.respublicae.eu/lugaricano/status/1599411027971436544
RT @COdendahl: Of course, #Brexit cannot be made to work. It's either economically or politically unsustainable.
But it will probably have to damage Britain for a few more years before those 29% grow to 40. (Luke's thread is worth reading in full.)
🐦🔗: https://n.respublicae.eu/lugaricano/status/1599394329310613505
Unofficial automated mirror. No copyright asserted. ∎ Economist. Back at LSE as a Professor at @LSEPublicPolicy Summer 2023. Non-resident Fellow @bruegel_org. Recovering MEP. Currently @ChicagoBooth.
Joined Apr 2022
