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
The tax-payer put granted to banks means that if things go badly for a very large bank, the share price is unlikely to ever reach 0- the taxpayer will step in and recapitalize the bank.
Heads they win, tails we lose.
Yes, we, taxpayers, are the ultimate “loss absorbers."
3/10
🐦🔗: https://n.respublicae.eu/lugaricano/status/1641912447492579330
Banks are not normal firms: shareholders of banks benefit from a special type of put option.
A put is a contract that gives the buyer the right to sell an asset at a fixed price within a certain period of time- allowing her to benefit from a drop in the asset’s price.
2/10
🐦🔗: https://n.respublicae.eu/lugaricano/status/1641912446251159556
Does economics say that "since firms and shareholders have the incentives to take care of themselves, regulators should let banks pay dividends if they want to"?
No. The incentives of taxpayers and shareholders are not alligned.
[A thread]
1/10
🐦🔗: https://n.respublicae.eu/lugaricano/status/1641912444711845888
RT @erikbryn: Ever wonder where robots are being used most?
Here's our new @nberpubs working paper on robot that analyzes US Census data. We find that a small number of "robot hubs" are buying most of the robots.
🐦🔗: https://n.respublicae.eu/lugaricano/status/1641905456510533633
Spain's imports Russian gas up by 84% yoy, largest increase in Europe.
And the most interventionist government in Europe claiming "this gas is flowing into Spain and we do not know how to stop it". Pathetic. And false.
https://www.elconfidencial.com/mundo/2023-03-31/gas-ruso-fluye-espana-gobierno-bruselas-pararlo_3602790/
🐦🔗: https://n.respublicae.eu/lugaricano/status/1641881743509667840
This is going viral but many are reading it wrong. It is pretty clear from the entirity of the evidence (as @jburnmurdoch himself points out) the health care system has nothing to do with this-- it is guns, drugs, food, car-crahes.
RT @jburnmurdoch: NEW: I’m not sure people fully appreciate how dire the US life expectancy / mortality situation has got.
🐦🔗: https://n.respublicae.eu/lugaricano/status/1641869698051498011
Every word of the fantastic last article before his arrest by @evangershkovich is informative. A brave and smart journalist- that was his crime.
I hope for his fast release.
🐦🔗: https://n.respublicae.eu/lugaricano/status/1641866654765178900
EU governments did not dare to impose gas sanctions (not even now!) and it was Putin who miscalculated and "sanctioned himself." Happily, as many economists had argued, the damage to Russia was much larger than to Europe-- we had alternatives, he did not.
https://www.wsj.com/articles/russias-economy-is-starting-to-come-undone-431a2878
🐦🔗: https://n.respublicae.eu/lugaricano/status/1641866055596269581
RT @HannoLustig: marking portfolios of marketable securities to market is good practice not just for banks but also for governments and central banks regardless of how long they intend to hold these securities.👇
🐦🔗: https://n.respublicae.eu/lugaricano/status/1641849038403141637
If you want to know what is the disturbing data @LHSummers refers to , its author, @jburnmurdoch has just done a pretty comphensive thread with all the charts.
?s=20
RT @LHSummers: The most disturbing set of data on America that I have encountered in a long time. This transcends politics.
This is especially scary remembering that demographics were the best early warning on the collapse of the USSR. https://t.co/knrLf2GJkg…
🐦🔗: https://n.respublicae.eu/lugaricano/status/1641833643562659840
Shocking graph in the @ft by @jburnmurdoch
- A five-year old from the US has a 1 in 25 chance of dying before 40. This is 1 in 100 in a peer country.
- While an older American has the same/higher life expectancy as one of a peer country
https://www.ft.com/content/653bbb26-8a22-4db3-b43d-c34a0b774303
🐦🔗: https://n.respublicae.eu/lugaricano/status/1641780938114834436
@josecapmany @ERC_Research Huge congratulations!! Me alegro muchísimo.
🐦🔗: https://n.respublicae.eu/lugaricano/status/1641628217088851969
Here is the link to a summary of my proposal, ICYMBI
https://cepr.org/voxeu/columns/combining-environmental-and-fiscal-sustainability-new-climate-facility-expenditure
🐦🔗: https://n.respublicae.eu/lugaricano/status/1641527357574881289
Nice to see the @ecb defending a joint EU climate and energy security fund.
Thanks for the cite to my proposal!
🐦🔗: https://n.respublicae.eu/lugaricano/status/1641527110668787741
RT @NateSilver538: It's worth remembering that media coverage (e.g. blanket coverage of his rallies on CNN) was generally pretty helpful to Trump in the 2016 primary* and I'm not sure the habits or incentives have changed all that much.
* Maybe the general election also, but for different reasons.
🐦🔗: https://n.respublicae.eu/lugaricano/status/1641475316848680960
Excellent Mme @vonderleyen : China has changed, radically, it's priorities. The EU must change its approach.
The speech Europe needs today.
RT @vonderleyen: Our relationship with China is one of the most intricate and important.
How we manage it will be a determining factor for our future economic prosperity and national security ↓ https://n.respublicae.eu/i/broadcasts/1rmGPkOerXgKN
🐦🔗: https://n.respublicae.eu/lugaricano/status/1641464719532851201
RT @AlinejadMasih: 100,s or even more of Iranian Twitter accounts were suspended recently. It’s not acceptable that the real criminals like @khamenei_ir who order the killings of 1000s of Iranians, roam free on Twitter but those who merely use strong language are suspended.
We are in the middle of…
🐦🔗: https://n.respublicae.eu/lugaricano/status/1641209291192279041
RT @greg_ip: In other words, have we effectively guaranteed all deposits without Congress acting? And if so, how and when do Treasury, Fed withdraw that implicit guarantee?
🐦🔗: https://n.respublicae.eu/lugaricano/status/1641107669984452609
An important post by @JonHaidt on the huge increase in teen anxiety, depression and mental illness and the evidence (until now, indirect) of social media as a cause.
Behind these cold numbers, there is a lot of suffering and pain.
https://jonathanhaidt.substack.com/p/international-mental-illness-part-one
🐦🔗: https://n.respublicae.eu/lugaricano/status/1641106862325248000
Campus @UChicago looking beautiful (all pics from same corner).
🐦🔗: https://n.respublicae.eu/lugaricano/status/1640877774960295936
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
