The pathology of power

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“Power tends to corrupt”. This famous sentence written by the Catholic British historian Lord Acton is often quoted but seldom understood. Today, the collective imagination pictures corruption in a very narrow and childish way, restricted to the customary envelope discreetly delivered beneath the table. However, the corrosive effect of power on the human being embraces …

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How others are already leaving the crisis behind

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Let’s follow John Lennon. Imagine. Imagine a country suffering in 2008 and 2009 a crisis at least as severe as ours but which, thanks to setting in motion a series of deep reforms, grew 5.5% in 2011 and 3.5% in 2012. Imagine that this particular country succeeded precisely by ignoring the recommendations of the usual …

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Still believing in GDP?

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When the Greek philosopher Plato wrote the “Allegory of the Cave” 2,400 years ago, he was surely thinking about Keynesian economists (that is to say, nearly all economists): a group of men, chained to their convictions, confusing reality with the shadows that the light of real life projects on the wall of their own cave. …

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A model that works just fine

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In today’s Spain, paralyzed by fear and doubt, trapped in the shifting sands of a moral political and economic Depression that seems to have no end, we witness in total shock how the government raises our taxes every three weeks shamelessly breaking every promise it made, and trying to neutralize the uproar caused by this …

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Dangerous monetary policies

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In my previous article “The Myth of the Central Banker” I tried to demystify central bankers on the grounds of their very mediocre forecasting track records and analyses of reality. Their decisions are too often influenced by the dynamics of power and public image, the short-termism linked to political cycles and the most primitive of …

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The myth of the central banker

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People at the helm of central Banks are currently enjoying huge power, recognition and public attention. The impact of the measures they take or simply announce (even if it’s merely a bluff), is still enormous. This power notwithstanding, their performance is hardly subject to supervision and, following the traditional privilege of the political class, they …

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The European mess

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The European set-up of today, that is, the one represented by the Brussels-based bureaucratic mammoth, the unelected representatives of 500 million citizens, the nineteen sterile and increasingly pathetic anti-crisis summits and the sloppy political invention of the euro, that European organization is in deep trouble, shaken on top of its three unstable pillars: France, the …

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Austerity and reality

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Austerity is the latest buzzword. In the good old days it used to be regarded as a virtue; today it only seems to mean bitter difficulty, severity and harshness. It shouldn’t come as a surprise, then, that austerity has brought so much criticism with it: easy tasks attract far more volunteers than difficult ones. However, …

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What if the peseta comes back?

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The situation in Europe is worrying and we need to be realistic about it. It is not a matter of arguing about what it should be or what we would like it to be, but of understanding what it really is. To put matters into perspective we need to remember that the construction of Europe …

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Reform is not enough: we must reboot the system

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The economic and financial crisis that the western world and, in particular, Spainare now suffering is the Great Debt crisis. Although each country has its own particular features, the common factor is excessive borrowing, first in the private sector, now in the public sector as well. How did we get into this situation? For the …

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