Tag Archives: Notes

The NZZ argues that Switzerland is stuck (presumably when compared with first best, not relative to other countries), and it features evidence in a series of columns.

The ECB’s new monetary policy strategy.

In the FAZ, Christian Siedenbiedel reports that Deutsche Bank questions whether a digital Euro as envisioned by the ECB (i.e., with tight quantity restrictions) would be successful: Die Argumentation geht so: Die EZB will den digitalen Euro einführen, um auf den verstärkten Währungswettbewerb zu antworten. … Um sich vor solchem Machtverlust sowohl durch Digitalgeld von anderen Notenbanken („Krypto-Dollars“) als auch durch privates Digitalgeld („Global Stable Coins“) zu schützen,...

In the NBER working paper “Dissecting Green Returns,” Lubos Pastor, Robert Stambaugh, and Lucian Taylor argue that excess returns on green assets during recent years are unlikely to predict expected excess returns. At least that’s what theory suggests: … green assets have lower expected returns than brown, due to investors’ tastes for green assets, yet green assets can have higher realized returns while agents’ tastes shift unexpectedly in the green direction. … green tastes can...

Goodreads rating 4.04. Seine Wunde blühte, sein Leid strahlte, sein Ich war in die Einheit geflossen. … Weisheit ist nicht mitteilbar. Weisheit, welche ein Weiser mitzuteilen versucht, klingt immer wie Narrheit. … Mir aber liegt einzig daran, die Welt lieben zu können, sie nicht zu verachten, sie und mich nicht zu hassen …

In a new working paper the Swiss Bankers Association identifies challenges for banks. Nevertheless it argues that [a]ny conclusion that the status quo is the least risky option seems premature and shortsighted. … The introduction of digital currencies and design questions regarding payment methods and infrastructure represent strategic business as well as political challenges on which public authorities and business must take a productive position. An informed discussion on the...

In a CEPR discussion paper, Andreas Fuster, Tan Schelling, and Pascal Towbin analyze how banks respond to changes in the threshold level above which reserves held at the central bank are charged negative interest: … exploiting an unexpected decision by the Swiss National Bank in September 2019 to change the threshold calculation without taking any other policy actions. This change led to a large increase in overall exemptions, but with variation across banks. Using a...

Goodreads rating 4.22. Your fear of death is but the trembling of the shepherd when he stands before the king whose hand is to be laid upon him in honour. … Surely there is no greater gift to a man than that which turns all his aims into parching lips and all life into a fountain. And in this lies my honour and my reward,—That whenever I come to the fountain to drink I find the living water itself thirsty; And it drinks me while I drink it. … If these be vague words, then seek not to...

In an NBER working paper, Jose Maria Barrero, Nicholas Bloom, and Steven J. Davis argue, based on a survey of 30 000 Americans, that … 20 percent of full workdays will be supplied from home after the pandemic ends, compared with just 5 percent before. … better-than-expected WFH experiences, new investments in physical and human capital that enable WFH, greatly diminished stigma associated with WFH, lingering concerns about crowds and contagion risks, and a pandemic-driven surge in...

On VoxEU, Paul Krugman reviews Mundell’s work in international finance and his impact on supply side economics.