EU economy

Central bankers’ theories have in practice fallen short. That has left them vulnerable to attacks. 

Neither experience nor theory supports the case of the hawks. 

Two of them, in fact. 

A disappointing package risks denting ECB’s inflation credibility. 

Germany offers zero-coupon bond maturing in 2050. Investors lap it up. 

Who is right? Twitter or Milton Friedman? 

The entire German yield curve goes below zero for first time ever.

“The ECB has to do something, because it’s the only one that will” is not an argument.

Deleveraging is likely to take a long time.

The European Central Bank has either changed history, or paused it.

Its current capital key approach reduces funding costs for the wrong countries.

Target2 liabilities skyrocket as cash shifts to the Eurosystem.

In this guest post, Marcello Minenna discusses Italian markets and risk segregation in the eurozone.

Alberto Gallo will manage the new vehicle, as tail risk insurance makes a comeback

Cognitive dissonance trading special.

After a slow Q1, all is well in the German world again.

The following guest post on trends in public investment spending is from Marcello Minenna, the head of Quantitative Analysis and Financial Innovation at Consob, the Italian securities regulator. The views expressed here are his personal opinions and do not necessarily reflect the views of Consob.

It’s way too tight. Federalism is the answer.

The currency bloc has been relying on the largesse of foreigners to compensate for stinginess at home.

Because there is an arbitrage opportunity.

They may have been investment-grade, but Steinhoff’s bonds have been a bad deal for the ECB.

In this guest post, Marcello Minenna, the head of Quantitative Analysis and Financial Innovation at Consob, the Italian securities regulator, argues that reforms to the European Stability Mechanism can pave the way for Eurobonds. The views expressed here are his personal opinions and do not necessarily reflect the views of Consob.