We should entertain the idea that it might not be the same pattern as during the eurozone crisis, but this time the banking system in one of the “stronger” economies might come under stress.

…and vast majority of retail clients doing all their banking stuff via mobile banking?

Twin-Shock of r% risk and sudden deposit outflows thanks to mobile banking would ignite a bank-sovereign doom-loop and deposits fleeing weaker countries to stronger ones? Well, who are the € area economies w banks that have massive long dated mortgages at low r% on their books…

@finhstamsterdam thing is: do supervisors even look at substantive issues (balance sheets of banks), or just check if financial institutions themselves have the right processes in place?

Do you want to know what is even more lucrative than academic publishing?

Academic surveillance publishing! User data made #Elsevier about 1.7 billion € (or US$) in 2022.

"less than half of Elsevier’s revenues come from academic journals"

http://bjoern.brembs.net/2023/03/should-you-trust-elsevier/#comment-5670

If you have read one Elsevier paper that year or have used any of their tools, you have contributed.

How CJEU’s case law on monetary policy in the Euroarea is based on outdated monetary theories about the causes of inflation https://www.dezernatzukunft.org/interest-rates-not-the-money-supply/

RT “NEW BLOG by Marc Lavoie &
@Lprochon
in response to
@ojblanchard1
:

Olivier Blanchard and Inflation

https://medium.com/@monetarypolicyinstitute/olivier-blanchard-and-inflation-219f195125fe…

"In the end, Blanchard’s views on conflict inflation should be embraced by post-Keynesians, and represent certainly a path towards a potential dialogue."”

https://twitter.com/MonetaryBlog/status/1610410490894712834?s=20&t=K1dgWgN-0f7kN7iJVfV28Q

@blair_fix “even Blair Fix came around: money printing causes inflation - see his recent blog post, but if you are short on time, Fig 1 paints a 1000 words!”

@blair_fix up until Fig 1 I was somewhat worried: what is he writing? Did I miss something?? Good cliffhanger (and insightful and clearly written post!)

If there's one thing you should know about inflation, it's that inflation is *not one thing*. It's an instability in the entire price system.

In this update post, I revisit my inflation research. There's loads of charts to gawk at, plus an excoriation of free-market gurus.

Something for everyone!

#inflation

https://economicsfromthetopdown.com/2022/12/15/inflation-everywhere-and-always-differential/

@mchereji cheers!

People who know me from Twitter are sick and tired of this, but I'm new-ish here, so time for a PSA: I maintain an extensive (currently 1,100 titles) bibliography on the Far/Extreme/Radical Right. You are very welcome to download it in full: https://www.kai-arzheimer.com/extreme-right-western-europe-bibliography.bib Or you can search through it / browse it here: https://www.kai-arzheimer.com/extreme-right-western-europe-bibliography/ For extra serendipity, you can also follow this bot that posts ~3 random references per day: @RRResRobot #RadicalRight #PoliticalScience @politicalscience

Seems more difficult than I thought - how do you import the followings from Twitter on mastodon? (Ie the people that I follow on Twitter and those who have an account on mastodon, any server?)

In retrospect, “Not risk, but FUD” was the correct crypto mantra.

Dear followers, a student wants to write their paper on greenwashing and ESG and asked for some sources. I could point him to Buller’s book (Value of a Whale, chapter 4), and some things Daniela Gabor wrote. So besides generic suggestion (browse political economy journals), does anyone have a good, must-read source on ESG and greenwashing that you could recommend? 🙏

Sticky wages and the Great Depression
Jason Lennard
uses a novel dataset to estimate nominal wage rigidity in interwar Britain. Over 3 million workers receiving wage cuts in 1931, indicating high labour market flexibility.
https://cepr.org/voxeu/columns/sticky-wages-and-great-depression

“[insert crypto exchange] clients are not affected, we maintain full reserves!” is a marker that things are not going well with that crypto exchange.
Reminds me always of ex-chancellor Merkel’s line “ich hab vollstes Vertrauen in [insert name of minister about to resign]”

On the bankruptcy proceedings that might now follow for FTX: https://twitter.com/FabiusMercurius/status/1591482495995985921?s=20&t=ZEqv2Ywb3ahiwnMTOyZd6A

Yet, perhaps the more interesting parallel is the one on how companies like Lehman were structured and how FTX (and surely many other exchanges) are structured: who owns what, who holds claims against who and how can all of this be disentangled in bankruptcy proceedings is the far more fundamental question than the inherent fragility of trading models in my opinion. @KAPistor work (code of capital) is perhaps more pertinent than ever in this regard.

Over the last years a number of interesting works drew parallels between the shadow banking system and the crypto space, especially DeFi. The focus has been on opaqueness, complexity and automation of contract liquidation that could lead to similar liquidity spirals as during the GFC, but also how concentrated the space is (from top of my head papers by Saule Omarova, Hilary Allen and a range of papers by the BIS). 1/2