Definition of insanity is to try the same thing over and over and hope for a different result. The Euro zone is run by high-debt countries whose solution to any adverse shock is more debt. That didn't work post-2008 and it's not working now. Only debt reduction will bring growth.

💯 The EU's ruling class should stop lecturing the rest of the world and start fixing the messes in its own backyard.

If the government is **borrowing to invest in risky assets**, you're either forcing taxpayers to bear the risk (more tax revenue in bad states of the world) or you're assuming bond markets investors are naive (or you're just going full scale financial repression). The risk does

Kim Ruhl and Pierre Yared are outstanding economists with impressive track records. Hard disagree with Justin.

Pete: Gotta say. If you think that's very complicated, then you're in for one helluva ride.

Honored to contribute to this piece in FT Alphaville . Robin Wigglesworth, the editor, presents a thought-provoking question: should Norway’s sovereign wealth fund allow outside investors, including institutions and even individuals, to invest in the fund? ft.com/content/fb0cbf…

Strategic Bitcoin Reserve makes as much sense as Strategic Baseball Card Reserve. 👇

🚨We examine the effects of Liberation Day tariffs on U.S. prices, employment, deficit and welfare. Retaliation hurts a lot! Check out the paper! Ahmad Lashkaripour

Sadly, I think this is pretty accurate.

With great sadness, I announce the passing of my co-author and friend, Marcus Hagedorn. His acerbic wit was as sharp as the vision of Toni Kroos. He attacked big research questions like he tackled the mountains of Mallorca on his bike. He will be missed.

Very touching tribute by Espen, Iourii, and Kurt, to the memory of the much regretted, gone way too soon, fantastically talented, innovative, constructive, vertical, courageous, and yes also funny and kind, macroeconomist and human Marcus Hagedorn. sas.upenn.edu/~manovski/Reme…

Iourii Manovskii has posted a short piece remembering Marcus Hagedorn — as a scholar and friend. Link: sas.upenn.edu/~manovski/Reme… Happier days: Marcus with his bike at the top of San Marcos Pass above Santa Barbara.

Alessia Russo and I couldn’t agree more with Espen Henriksen, Iourii and Kurt MIT-shock-man: sas.upenn.edu/~manovski/Reme… Ciao, Marcus — it’s been a real privilege, from your “old-style” macro friends. Thanks for everything! Good times: Marcus visiting us in Italy x.com/dSEA_Unipd/sta…

Week 6 of advanced weight training and I'm still not sure how this is football.

Great post by Jesús Fernández-Villaverde Fertility is declining very fast in Latin America. By now, all big countries in LATAM have fertility rates (TFR) below replacement. This surely implies that Americas as a whole are below replacement. A new world, indeed.

US TFR projections vs realized. from Geruso and Spears (2025), authors of 'After the Spike'.

– Problemet er at dette kan sette en farlig presedens. At politikere sammen med pressgrupper skal kunne søke aksjer som de mener har en eller annen form for uheldig virksomhet og bruke nedsalg i disse for egen politisk markering, sier Espen Henriksen. nrk.no/norge/finansek…