THE ANALYSISA mountain of debt and inflation are sending shockwaves through all the marketsGovernment bond yields are rising in advanced economies, driven by inflation and growing public debt. China is an exception and is keeping rates low thanks to its control over the banking system, albeit at the cost of weaker consumption and growth.byLorenzo Bini Smaghi5 SEP 26
Trump’s inflationMarkets fear that the US will monetise its record debt. The way outIf necessary, the new Chairman of the Federal Reserve, Kevin Warsh, will raise interest rates. Whether the US President likes it or notbyLorenzo Bini Smaghi22 AUG 26
incorrect topicsItaly’s absurd obsession with banks’ windfall profitsAmid the debate on the Budget Bill, discussion has returned to the infamous tax, which, however, raises problems from various perspectives: it is not only unjustified, it is a mistake in economic policybyLorenzo Bini Smaghi15 AUG 26
The analysisWhat’s wrong with the US intervention in the yen and why it risks being an own goalFrom the absence of any reference to the G7 system to the flimsy arguments that the Japanese currency was at risk of a collapse. The markets are not convinced of the validity of the operation but consider the euro, which underpinned it, to be sufficiently robust and liquid byLorenzo Bini Smaghi8 AUG 26
The problemRaise interest rates? Warsh tries to buy time, the Fed is dividedThe new chair of the US Federal Reserve would like to raise interest rates to combat inflation. But he also wants to avoid snubbing President Trump, who has just appointed him. His concern is understandablebyLorenzo Bini Smaghi1 AUG 26
AnalysisBrussels wakes up to the fact that the EU banking system is not competitiveThe bloc’s economy has lost competitiveness, particularly compared with that of the United States. However, the Commission’s document appears to correctly identify the causes of the malfunction, ranging from misguided regulation to market fragmentationbyLorenzo Bini Smaghi25 JUL 26