"[Central Bank] monopoly power eliminates the forces that induce the central bank from delivering the socially optimal amount of maturity transformation..."
In the nearly four months since the Covid-19 outbreak reached the United States the market has experienced an historic crash and equally historic recovery.
Bulgaria’s attempt to enter the ERM II waiting room is a farce. The first act of this three-act play begins with the mere thought of abandoning Bulgaria’s currency board and the lev. The currency board killed Bulgaria’s terrible hyperinflation of 1997, and it stabilized the economy and paved the way for Bulgaria’s entry into the EU and NATO. It has worked automatically and perfectly, just as I designed it to work. The Bulgarian public knows this and supports the currency board.
A report by the Becker Friedman Institute at the University of Chicago estimated 42% of layoffs that occurred as a result of the pandemic will be permanent.
