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A space for musings on economic policy and political economy by Hanno Lustig and Romain Wacziarg

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Latest Issues

Global bond markets. Marked to Market. Part I.

In the aftermath of the Great Financial Crisis, long-term yields in advanced economies continued their decline to historically low levels. The secular decline in yields continued all the way until the COVID-19 pandemic of 2020.

This decli...

5 days ago
47
5

Whatever it takes was not free.

The spread between the benchmark 10-year French (OAT) government bond and the German Bund is currently trading at 94 bps. The spread has roughly quadrupled from 20-25bp in early 2021 to a low-50s range through mid-2024, then jumped higher...

13 days ago
46
5

What are U.S. Treasury markets really telling us? Part II.

In one of his recent posts, Paul Krugman asked “What are bond markets telling us?” According to Krugman, there is no reason to panic in response to the steady rise in longer yields. Krugman cites the fact that long-run inflation breakevens,...

a month ago
64
10

From Core to Periphery. France in the Eurozone.

A firestorm erupted on X when Matthieu Pigasse, a prominent former French banker, suggested that the French government ought to consider cancelling the national debt that is held by the ECB. That kicked off an interesting discussion about t...

a month ago
78
10

What are US Treasury markets really telling us? Part I

In one of his recent posts, Paul Krugman asked, “What are bond markets telling us?” His answer is: don’t panic. According to Krugman, yields are up mainly because of a surge in the demand for credit fueled by hyper-scalers building data cen...

a month ago
110
5

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Authors

The writers behind this newsletter.

  • Romain Wacziarg

    Economist, Professor at UCLA, Editor of the Journal of the European Economic Association, Faculty Director of the Center for Global Management at UCLA Anderson.

  • Hanno Lustig

    Economist at Stanford. Fascinated by exchange rates. Really wanted to be a pilot. Actually, taxes do fund spending.

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