Demoralized employees at the Fed-survey reports
“Regulators overseeing the nation’s largest financial institutions are distrustful of their bosses, afraid to speak out, and feeling isolated, according to a confidential survey this year of Federal Reserve employees.”

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“No one is ever really sorry when an economist dies.”

bagehotsaid Walter Bagehot. After the subprime crisis burst in 2008, people were probably thinking: no one is ever really sorry when a banker dies.

I recommend reading about a mock trial of economists organized by LSE in 1933. I found information here: and more about it is here:

What a story! – “Boothby indicted the economists for being “unintelligible.” Worse, he said, they had been proven wrong, disagreed among themselves and changed their arguments. He particularly attacked “the gang which calls itself J.M. Keynes” for its contradictory opinions, which he said had nearly driven the minister of agriculture mad.”

Defendant: “Did you ever know any two economists to agree upon anything — whether the government liked it or not?”

Boothby: “On my oath, never!”


(A picture from

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Bundesbank declares ‘war’ on Mario Draghi bond bail-out at Germany’s top court

Germany’s Bundesbank has issued a devastating attack on the bond rescue policies of the European Central Bank, rendering the eurozone’s key crisis measure almost unworkable.

This is news from April but the solution/next info is to be expected in June.

Update: as a current article from Der Spiegel describes “Germany’s highest court is currently reviewing the European Central Bank’s controversial bond-buying program to shore up euro-zone crisis countries. A decision in Karlsruhe could determine the common currency’s fate..”

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Some personal public relations

Me on central banks on the first webpage of the University of Turku (English version)
and more here:

Soon I’ll write a report from the recent Meeting of the European Central Punk that took place in Zurich, 3-6April, 2013.

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Kenen on the euro | vox

Kenen on the euro | vox.

One of the world’s most influential international economists, Peter Kenen, passed this week. This column highlights the key role his insights played in the construction of the Eurozone and the problems that arose when his insights were ignored. – write Barry Eichengreen, Charles Wyplosz, 21 December 2012

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ECB Ambition Fulfilled for Mersch as Bowles’s Gender Fight Rages, writes

marsch“Yves Mersch is about to fulfil an ambition denied to the Luxembourg central bank governor for months in a fight over gender politics as he fills the vacant slot on the European Central Bank’s Executive Board.

After the longest battle over an appointment in the Frankfurt-based ECB’s 13-year history, the 63-year-old will tomorrow officially change job and become the sixth member of the central bank’s management team. His first working day will be Dec. 17, and the first Governing Council gathering he will attend in his new role takes place two days later. ”
More about this story:

(Photo:Patrick Hertzog/AFP/Getty Images)

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Lorenzo is back! (At least in media)

The A-List: Lorenzo Bini Smaghi: Do not trust politicians to supervise Europe’s banks
Bank supervisory authorities that are not sufficiently independent, and are too closely associated with the political authorities, are generally under pressure to delay the identification of insolvent banks, for the fear that taxpayers would get upset.

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