Die Kultur der VWL

Ein schöner Auszug zum Wochenende: Economists essentially have a sophisticated lack of understanding of economics, especially macroeconomics. I know it sounds ridiculous. But the reason why I tell people they should study economics is not so they’ll know something at the end—because I don’t think we know much—but because we’re good at thinking. Economics teaches you to …

Decoding Euro-moralizations

There are some moral debates about the Euro going on in the international blogosphere with Tyler Cowen and Ryan Aventas the main participants, and Scott Sumner adding some interesting historical perspective.  In my view, Ryan and Tyler are not talking about the same thing, so let me offer a different take on the issue. In discussions of the Euro crisis, …

Why we need the European Central Bank as Lender and Owner of Last Resort

A guest post by Arash Molavi Vasséi This post summarizes a short policy note in which I argue that the only feasible as well as incentive-compatible solution to the current sovereign debt crisis in the Eurozone involves the European Central Bank (ECB) as a Lender of Last Resort to the Eurozone’s core countries like France, Austria, Finland, and …