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Reposted by Antonio Fatas

VoxEU @ CEPR @voxeu.org · 7d

Steven Kamin analyses how, in the months following 'Liberation Day', the dollar switched from rising during periods of market volatility to falling, and thus appeared to switch from a safe-haven to a 'risk-on' currency.
cepr.org/voxeu/column...
#EconSky

Graph of the VIX volatility index and DXY dollar index from 1 January to 26 August 2025. A dashed vertical line identifies 'Liberation Day'.

There is general agreement that a currency’s safe-haven status can be gauged by its response to changes in financial volatility. This column documents how, in the months following the Trump administration’s “Liberation Day” announcement, the dollar switched from rising during periods of market volatility to falling, and thus appeared to switch from a safe-haven to a ‘risk-on’ currency. Its reversion to traditional flight-to-safety behaviour in recent months may indicate that this ‘risk-on’ episode was a one-time event, but it is also possible that even as financial markets have calmed down, foreign entities are taking steps to reduce their dependence on the dollar for trade, payments, and investment.

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Philip Stephens @philipstephens.bsky.social · 8d

Blair role in Gaza politically crass and insulting to Palestinians. Yet I almost feel sorry for him. Most brilliant leader of his generation reduced to ventriloquist's dummy for Larry Ellison and lackey to Trump in desperate quest for relevance. Politics sometimes ends in tragedy as well as failure.

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Catherine Rampell @crampell.bsky.social · 12d

"experts say"
www.cnn.com/2025/08/11/b...

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Kimberly Clausing @kclausing.bsky.social · 13d

🧵 (1/7) With @knittelmit.bsky.social and @cwolfram.bsky.social, happy to announce our new paper on “Who Bears the Burden of Climate Inaction?”, just posted for BPEA @brookings.edu.

We find large climate cost impacts that vary by both geography and income.

www.brookings.edu/articles/who...

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Antonio Fatas @antoniofatas.bsky.social · 13d

It has never been about the technology or any real innovation in digital money and payments. It has always been about regulatory arbitrage.

Stablecoin issuer Circle examines ‘reversible’ transactions in departure for crypto

President says sector should learn from traditional finance and allow refunds in cases of fraud or disputes

www.ft.com

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Menzie Chinn @mchinn.bsky.social · 21d

Industrial, mfg prodn, retail sales all above consensus... #EconSky
econbrowser.com/archives/202...

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Menzie Chinn @mchinn.bsky.social · 23d

EJ Antoni says the recession is *here*!!! (as of August ***'24***) #EconSky
econbrowser.com/archives/202...

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Hugh Brechin @hughrbrechin.bsky.social · 24d

good that Keir has broken his silence this morning to ... continue posting on a website run by a man who yesterday addressed a far right rally to call for his overthrow, while not in any way addressing said far right rally

A post this morning from Keir Starmer on Elon Musk's X in which he welcomes American financial investment into the UK and makes no comment on other matters

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Adam Posen @adamposen.bsky.social · 24d

It appears that Lisa Cook held off "proving her innocence" because she thought (rightly) she shouldn't have to. To have the courage to do that when the US state is attacking you is pretty darn admirable.

Financial Times @financialtimes.com · 25d

Fed governor Lisa Cook listed contested home as vacation property on.ft.com/46hiIu7

Federal Reserve governor Lisa Cook listed contested home as vacation property

Documents appear to contradict White House allegation that she committed mortgage fraud

on.ft.com

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The Guardian @theguardian.com · 26d

Poland says Russia’s drone incursion ‘wasn’t a mistake’ after Trump’s speculation – Europe live

Donald Trump appeared to be dismissive Thursday night as he said it ‘could have been an mistake’ Poland’s political leadership appears increasingly concerned by the muted US response to Thursday’s Russian drone incursion into Polish airspace. As more and more European partners condemn the incident and declare their support for Poland with concrete offers of help, the US president, Donald Trump, appeared to be more dismissive last night as he said it “could have been an mistake”. Continue reading...

www.theguardian.com

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Charlie Warzel @cwarzel.bsky.social · 28d

I wrote about what I think is a genuinely revealing document of elite depravity and impunity. It is shocking and sickening. But it's also a crucial moment. We're about to see what happens when conspiracy theorists actually get what they asked for but it turns out not to be what they want.

You Really Need to See Epstein’s Birthday Book for Yourself

This time, the conspiracy theorists were right.

www.theatlantic.com

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Antonio Fatas @antoniofatas.bsky.social · 28d

.

Israel launches attack on Hamas in Qatar

Explosions heard as political leadership of Palestinian militant group targeted for first time

www.ft.com

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Antonio Fatas @antoniofatas.bsky.social · 29d

I guess the father is smart enough and does not need an explanation??? IMF, you can do better [from the Finance and Development latest issue]

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Stefan Gerlach @sgerlach.bsky.social · Sep 3

In a paper presented at Jackson Hole, Emi Nakamura and her coauthors examine why central banks did not follow the Taylor rule when inflation rose sharply in 2021–22. The positive commentary the paper received prompted me to read it.
swissmacroandhistory.substack.com/p/comments-o...

Comments on Beyond the Taylor Rule

Credibility, expectations, and why central banks bent the rules

swissmacroandhistory.substack.com

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Mark Copelovitch @mcopelov.bsky.social · Sep 3

Congrats again to the elites who told us this guy was a credible Treasury Secretary because he went to the right schools & cocktail parties

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Alberto Alemanno @alemanno.bsky.social · Sep 2

Wow. The EU was ready to sanction Google for abusing its ad monopoly today.

But it was blocked after pressure from EU Trade Commissioner @marossefcovic.bsky.social & the U.S. DoJ.

Europe just chose Washington’s corporate interests over its own citizens.

Unprecedented. Self-inflicted.

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Katie Martin @katie0martin.ft.com · Sep 1

Shitshow waiting to happen

on.ft.com/41sHC8D

Stablecoins could trigger taxpayer bailouts, warns Nobel laureate

[FREE TO READ] Digital tokens perceived as safe assets come with hidden risks for retail investors, says Professor Jean Tirole

on.ft.com

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Catherine Rampell @crampell.bsky.social · Aug 29

I'm often asked why dire predictions about how Trump would destroy economy haven't (yet) come to pass.
Part of the answer is that he's paused/delayed/reversed some things (e.g., TACO on tariffs).
But part of the answer is about actions like this, on student visas...

Catherine Rampell @crampell.bsky.social · Aug 29

Trump admin planning to change student visas from lasting for duration of academic program to fixed 4-yr term, and then much harder to renew
Could destroy US ability to attract global talent, particularly those seeking advanced degrees in STEM. The median time to complete a PhD is 5.7 yrs per NSF.

Trump Deals A New Immigration Blow To International Students

Trump officials have proposed a new rule limiting international students to fixed periods of entry, making a U.S. education more precarious.

www.forbes.com

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Filipe Campante @filipecampante.bsky.social · Aug 28

Now that we're experiencing life under authoritarianism in the US, I'm struck by how it's a lot like living in a high-crime environment. (I grew up in Rio de Janeiro.) 1/

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Carl Quintanilla @carlquintanilla.bsky.social · Aug 28

Tariff inflation effects are just getting started.

(via Apollo)

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VoxEU @ CEPR @voxeu.org · Aug 27

Digital currencies pegged to fiat money face a built-in tension between credibility and competition. @eduardoyeyati.bsky.social‬ & Sebastian Katz analyse competing frameworks in the #US and #China to address this
#stablecoin paradox.
cepr.org/voxeu/column...
#EconSky

Graph of stablecoin market growth vs US M2 and Treasury holdings, 2020-2025.

Digital currencies pegged to fiat money face a built-in tension between credibility and competition, creating a ‘stablecoin paradox’. This column analyses the competing frameworks of the US and China to address the paradox. The US (under the GENIUS Act) combines strict reserve rules for privately issued, fully backed dollar stablecoins with market incentives that encourage expansion. Meanwhile, China’s approach centres on a central bank digital currency deployed domestically and extended across borders. Further expansion of the digital currency system will require backstop access, global coordination on regulation, limits on intermediation, and integration with payment systems.

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Antonio Fatas @antoniofatas.bsky.social · Aug 26

They will be competitive but if regulations are relaxed in the US what is the advantage of issuing offshore stablecoins? Cross-border payments are not solved with stablecoins unless everyone adopts the same one. Or we create new rails that connect all of them - doubtful.

Antonio Fatas @antoniofatas.bsky.social · Aug 26

But today US citizens can hold yield bank accounts abroad... if the other country allows them, which is not always obvious. Isn't the issue more domestic as stablecoins paying an interest will be a competitive alternative to bank deposits?

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Paul Krugman @pkrugman.bsky.social · Aug 25

If you think the attack on the Fed's Lisa Cook has nothing to do with you, you're wrong — any one of us may be next paulkrugman.substack.com/p/we-are-all...

We Are All Lisa Cook

Nobody is safe from weaponized government

paulkrugman.substack.com

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Julia Coronado @jc-econ.bsky.social · Aug 26

Lisa D. Cook, Member, Federal Reserve Board of Governors

“President Trump purported to fire me “for cause” when no cause exists under the law, and he has no authority to do so. I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.”

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