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Trends-Tendances – The danger zone, August 27 2020
If someone had solemnly said to me at some point in my life: “in ten years time we will look back and realize that humanity is at a turning point at this very moment, and that its survival depends on the great decisions that must be taken now in a hurry”, I would have asked my interlocutor a question in return, I would have said to him: “Why this moment rather than any other: the human race has gone through many trials”. I might even have added, a bit sarcastically: “Perhaps you know something that … Read the rest
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Where is the French revolution on the move heading? by Pierre Sarton du Jonchay
Guest post. The French version is here.
The generalisation of unemployment insurance to all entrepreneurs is a break with ordo-liberalism and a practical and paradigmatic entry into the universal knowledge-based economy. Work recognized as such by labour law is no longer defined as a subordination to an employer who is the sole owner of the surplus value, but as an investment by the individual entrepreneur in a production of potential surplus value for society as a whole. … Read the rest
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The Chinese Exception
(Published in French on October 18th 2017 in Le Monde as Qu’est-ce qui met les Chinois de si bonne humeur ? and in L’Écho as L’exception chinoise)
It is hard to imagine that there would be today a people somewhere approving without any soul-searching the policy pursued by its government or the economic circumstances of the nation. We are thus stunned to hear that since 2010 over 80% of the Chinese people express the view that they are satisfied with the direction taken by their country. And here is not a statement more or less tinged with government … Read the rest
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Euractiv.com, Paul Jorion : ‘Jean-Claude Juncker’s moral authority has been damaged’, 14th November 2014
Euractiv.com, Paul Jorion: ‘Jean-Claude Juncker’s moral authority has been damaged’
Does the LuxLeaks scandal represent a risk for the Commission?
Paul Jorion: Jean-Claude Juncker’s moral authority has been damaged. Of course, he hopes his investment plan will bring confidence, and it is a good idea. Especially if it can create employment and give purchasing power to European citizens. But his credibility has been tainted by the revelations about Luxembourg’s fiscal practices.
The current head of the Commission is the man who led the implementation of austerity policies within the Eurogroup, at the same time as organising tax evasion for big … Read the rest
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Medical Breakthrough: Low Dosage “Piketty” Prevents “FT” Fits (II/II), by H. Benisty (co-author with Timiota)
Guest post. The French version can be found here. Special thanks to Serge Boucher for the translation
We’ve shown in the first part of this post that a population of actors effecting “random walks” by betting their wealth daily, or more precisely a modest part of their fortune that lies above the poverty level, will eventually see a small group of “very rich” emerge, making everybody else comparatively poorer.
We now increase the number of actors to N=3600, all other hypotheses remaining the same, to get a more clear distinction between a continuum of the society and a few … Read the rest
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Medical Breakthrough: Low Dosage “Piketty” Prevents “FT” Fits (I/II), by H. Benisty (co-author with Timiota)
Guest post. The French version can be found here. Special thanks to Serge Boucher for the translation
On the subject of wealth concentration and rising inequalities, Thomas Piketty tells us that there is indeed a growing rift, and that the fifties were only an exception. One can always pretend that the Gilded Age gave us several decades of only occasionally rusty capitalism, hence reviving those levels of inequality is nothing to scoff at, especially if millions of people concurrently rise out of poverty.
Entertaining that view requires that we ignore many aspects of the Great Depression, which is highly … Read the rest
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On Europe, an answer to Mr François Hollande, president of the French Republic, by Pierre-Yves Dambrine
An English translation of Sur l’Europe, en réponse à Monsieur François Hollande, président de la République, par Pierre-Yves Dambrine by Johan Leestemaker
Invited commentary, in response of a tribune de François Hollande published today May 8 in the daily newspaper Le Monde, Paris, France.
Mr. President,
I have carefully read your speech on Europe, published today in the newspaper Le Monde, in the perspective of the very near European elections. I hold no doubt that you are a European by conviction. As many of us still are, because, as you remind us, the Union was a great and beautiful … Read the rest
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“The future of the Eurozone from an interest rate standpoint”, European Parliament, November 5, 2013
Here my contribution to European Parliament, Committee on Economic and Monetary Affairs, November 5, 2013, 3:30 to 6:30 p.m.
The future of the Eurozone can be approached as a logical problem. If not solved, it can at least be significantly clarified when the issue is examined from the single standpoint of the sovereign debt’s coupon for the nations belonging to the zone.
Within the economic zone where a currency applies, a single coupon level only should be in existence for each obligatory maturity. The founding fathers of the Eurozone assumed no doubt that such would be the case also … Read the rest
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European Parliament, Committee on Economic and Monetary Affairs, November 5, 2013, 3:30 to 6:30 p.m.
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A mail exchange about JP Morgan’s “The Euro area adjustment: about halfway there”, Europe Economic Research, 28 May 2013
… Read the restFrom : Paul Jorion
Object : The Euro area adjustment: about halfway there
Date : 21 June 2013 21:33:20 UTC+02:00
To : Malcolm Barr, David MackieGood day MM. Barr and Mackie,
I’m writing to you as I receive several mails drawing my attention to the following paragraph of your recent May report:
“The political systems in the periphery were established in the aftermath of dictatorship, and were defined by that experience. Constitutions tend to show a strong socialist influence, reflecting the political strength that left wing parties gained after the defeat of fascism. Political systems around the periphery
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VUB, “Stewardship of Finance” Chair, ninth lecture, 21st February 2013
My ninth lecture: labour and capital, talking about the distribution of newly created wealth, the way to conceptualise this, the political stances deriving from this and the light these shed on ethical perspectives about economic and financial issues.
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VUB: STEWARDSHIP OF FINANCE CHAIR, February 27 and 28, 2013
Wednesday, 27 February, 2013 – 19:30 to 21:30
VUB, Etterbeek
Building D
Promotion HallMonica Mächler & Hugues Pirotte
Monica Mächler served since January 2009 until the end of September 2012 as Vice Chair of the Board of Directors of the Swiss Financial Market Supervisory Authority FINMA, after having served as CEO of the Swiss Federal Office of Private Insurance from 2007 to 2008. In the International Association of Insurance Supervisors she was a member of the Executive Committee and Chair of the Technical Committee.
Hugues Pirotte is professor at the Solvay Brussels School of Economics and Management, ULB. He … Read the rest
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VUB, “Stewardship of Finance” Chair, panel discussion, 25th October 2012
The panel discussion topic was the same as that of the lecture of the day by myself: “Law, Ethics and the business world”. The participants from left to right were: Geert Noels (Econopolis), Ivan Van de Cloot (Itinera), Marc Beaujean (P&V) and Benoît Frydman (ULB). The moderator was Steven Rombaut (vrt).
Unfortunately due to the camera angle, Benoît Frydman was hardly visible when he spoke and me… not at all!
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VUB, “Stewardship of Finance” Chair, fourth lecture, 25th October 2012
Fourth lecture : “Law, Ethics and the business world”.
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VUB, “Stewardship of Finance” Chair, inaugural lecture, 4th October 2012
Some pictures of the audience, of some well-known fixtures of the blog, as well as the introductory speeches of the chair.… Read the rest
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LOTS OF FROTH, by François Leclerc
Guest post. Translated from the French by Tim Gupwell
A brand new development in the history of the ECB has occurred: leaks yesterday revealed the broad outlines of its new sovereign debt securities’ purchase programme. One cannot help thinking that it was necessary to prepare the ground in advance, with the ECB decisions falling well short of some of the mounting speculation.
According to Mario Draghi, there will be no limit to the amount of bond purchases on the secondary market – but the scope of the announcement needs to be put into perspective. They will in fact be decided … Read the rest
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READING LIST FOR THE “STEWARDSHIP OF FINANCE” COURSE AT VUB, STARTING OCTOBER 4th
1. Historians of finance
Martin Meyer:
The Bankers, New York: Weybright & Talley, 1974
Markets, New York: Norton, 1988Peter L. Bernstein:
Capital Ideas, New York: Free Press, 1992
Against the Gods. The Remarkable Story of Risk, Hoboken: John Wiley & Sons, 1996Steve Fraser:
Every Man a Speculator. A History of Wall Street in American Life, New York: Harper Collins, 2005
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LOOK NO FURTHER!, by François Leclerc
Guest post. Translated from the French by Tim Gupwell
In Spain, nearly 220 billion Euros have vanished into thin air during the first quarter. According to the Bank of Spain, foreign investors, but also Spanish ones, are responsible for this massive exodus of capital which concerns loans and deposits, but also share portfolios and sovereign debt securities. The capital outflows are accelerating: during the month of June alone, 56.6 billion Euros were registered. For the first six months, this outpour was triple the figure that had been recorded in 2011. The Madrid Stock Exchange lost 15% of its value during … Read the rest
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LE SOIR, ‘The only solution is to pool all the debts’, September 4, 2012
4 September 2012
An interview with Dominique Berns which appeared today in the economy pages of the daily newspaper, LE SOIR.
“To save the Euro, we must mutually pool the debts”
Q : The president of the ECB, Mario Draghi, has pledged to do “everything within his power to save the Euro”. Numerous observers expect the ECB to start buying up sovereign securities once again, only this time in a far more pro-active manner, in order to reduce the interest rates for the countries in difficulty, in particular for Spain and Italy. … Read the rest
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THE DRAWBRIDGE MENTALITY, by François Leclerc
Guest post. Translated from the French by Tim Gupwell
A united front of German banks has opened up, refusing any kind of interference from a supervisory body – in this case the ECB – due to their little idiosyncrasies and their little hidden frailties, but also the risk of being made to contribute via a European fund to the saving of other countries’ establishments. The savings banks, mutuals and regional banks (Landesbanken) which comprise it represent 70% of the deposits held in Germany.
Talking of deposits, the prospect of a separation of deposit activities from speculative activities has … Read the rest
