Inconsistency in Spain’s interest rates – Part 2
In the previous article, we discussed how the only asset that provides sufficient confidence to hold your money over time is government debt. However, we also said that for a country to offer low interest rates, translating as zero risk, the country needs to be in a good economic situation. So why is Spain’s interest […]
Government bond interest rates (10-year bonds). Part 1
In recent days we have seen how the 10-year bond has started to pay negative interest rates, but the question is… how did we reach this situation? When economic agents have income, this income can be transformed into savings, and these savings can be used to acquire consumer goods, capital goods or financial assets. Many […]
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 […]
Mortgages: Fixed or variable rate contract?
Como todos sabemos, y si no aquí me encuentro para explicártelo, cuando contratas una hipoteca, año a año tienes que pagar una serie de intereses al banco que te proporcionó dicha hipoteca. Dichos intereses pueden establecerse a tipo fijo (con un porcentaje fijo establecido de antemano) o a tipo variable (según vaya evolucionando el Euribor, […]
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 […]
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. […]
Beyond the crisis
General idea We were still feeling the effects of the economic crisis of 2008, when suddenly a virus took hold of our society, bringing us into total and absolute confinement for more than two months. What is happening? The effects as we all know are going to be devastating, our economy has fallen beyond 100% […]
