If we use less cash… why is its demand increasing?
As we all know, the economic crisis in which we find ourselves has greatly boosted household savings, due to the fear generated. Faced with future complications, families have preferred to save the capital they have, thus maximizing savings and minimizing their expenses and investments. Well, in the last few days, we have been able to […]
How does the economy work?
General idea Public administrations are obliged to present an annual budget of revenues and expenditures, more commonly referred to as the general state budget.On the revenue side, we find taxes, fees and other income derived from financial operations.On the expenditure side, we have the items that cover the public services offered by each country. Economic […]
How the 2008 crisis was forged
General idea On September 15, 2008, Lehman Brothers (a financial services company) collapsed, and was considered the largest bankruptcy in the US, marking the beginning of the crisis. Precedents like this occurred all over the world but… why? Future scenario We can say that the origin of the 2008 financial crisis occurred after the 9/11 […]
Introduction to the 2008 crisis – Problems in lowering interest rates
General idea We have already seen in one of our blogs what the functions of monetary policy are and how we can apply expansionary or restrictive policy. It is clear that in order to stimulate an economy we should apply expansionary policy, but problems can arise when lowering interest rates, as we will see below. […]
Main investment strategies
We are currently at a good inflection point on whether to invest or not to invest. The stock markets are in doubt, and with the advances of Pfizer and Moderna vaccines, everything points to the rise of these, so in this brief post we will explain the three most important investment strategies, depending on our […]
Creation of the digital euro
We simply need to know that this new euro will have the same utility as cash, but in electronic form. Many people are wondering if the creation of this digital euro will make cash disappear completely, or if that could be the real intention of its digitalization. However, the European Central Bank (the promoter of […]
The role of monetary policy
General idea Today we will look at the difference between fiscal and monetary policy, and focus on the latter, broadening our understanding of how the economy works. Fiscal vs monetary policy Well, fiscal policy is a branch of economic policy, which focuses on state budgets and their components, public spending and taxes. Monetary policy, on […]
Public spending
General idea An unprecedented crisis is upon us. At first we believed that a slowdown in economic activity would cause a downturn in the country’s economy, but that it would gradually recover in the famous asymmetric V. The data collected to date show that not even in our best dreams will this prediction come true. […]
Are public subsidies beneficial to help the productive fabric?
First of all, this is a very subjective issue. There are many ways to support our companies in difficult times, and today we will see two possible solutions to this problem. In times of crisis, our productive fabric needs stimuli to be able to survive, so if the government thinks it is convenient to subsidize […]
