The failure of a medium-size Austrian bank raises questions about the resilience of the Austrian-German banking system.
Sign In Close
There is much talk about the sovereign-bank "doom loop". But the bank-to-bank relationship is just as widespread - and just as dangerous.
Portugal's Espirito Santo Group shows that complex, opaque corporate structures with embedded banks create moral hazard and the risk of fraud.
Almost nobody actually understands how payment systems work. That is: if you “wire” funds to a supplier or “make a payment” to a friend, how does the money get from your account to theirs?
Acharya and Steffen (A&S), authors of “Falling short of expectations? Stress-testing the European banking system”, have written a confusing paper whose results are biased. Here's why.
It's possible that a society of educated people is likely to be more cultured and scientific-minded than one of non-graduates, and this should have positive externalities in the form of better political discourse and higher culture. There is, however, little evidence of this in practice.
Economics writer21 articles | View profile
RT @MarkThoma: The Trouble with Macroeconomics - Paul Romer https://t.co/M4FgQ7k8G4
Rodrik’s Rules - by @UnlearningEcon https://t.co/Y69L0r77Cy
RT @ChartWeek: https://t.co/CT7mdpD2g2
Will UK hit the Recession Buffers this Year? - by @johnweeks41 https://t.co/Ej53BRTlfD
RT @ChartWeek: https://t.co/QDfg9kRYfV