Where will this end?

Greece’s problems with paying it’s international debts probably hasn’t escaped anyone. As atmthe lenders maintain a hard line we’re headed into an eventful next week i’m sure. Bloomberg has the latest on the subject here


When the news coincide with your studies!

So the past few days i’ve been deep entrenched in my textbooks and lecture notes in International economics, as we’re having the exam for this course this coming Friday. It’s an interesting course all around, i’ve particularly enjoyed (yes, enjoyed!) the economic history and exchange rates regimes parts of the course.

Anyways, as i was browsing around brtri1Bloomberg’s site i came across this article that suits what i’ve been reading the past days almost eerily. It’s an article with a bit of background on capital controls and the Obstfeld-Taylor trilemma. Sometimes the planets just line up i guess 😉

Take a look at the article here if you feel in need of a slice of capital wisdom this Wednesday.


So, Scotland goes all in today; what is your take on the scottish independence referendum?

I posted this on EconTalk over at LinkedIn, thought I’d put it here as well.

So, Scotland goes all in today; what is your take on the scottish independence referendum?

Will it be a yes or a no? And i know that this is a question that is objectively hard to answer, but which would be economically more beneficial for them?

My own take is that IF they decide to leave the UK they will need to settle the question of their currency quickly. Britan says that (as far as i am concerned, correct me if i’m wrong) that they can’t use the pound. So what can they do in the short term? They’d need to create their own currency which apart from being extremely expensive is connected with all sorts of uncertainity and high transaction costs for external parties. If they’d create their own currency surely it would need to be pegged to 1; The british pound or 2; the Euro. A free floating untested currency would be a very high stakes game to enter as I see it. To instill trust in the market and any export partners the currency would need to be pegged to a tried and tested currency.

Anyways, let’s see how this goes. I just thought i’d get a discussion going here about it.