A lot has been written about the benefits of cryptocurrencies such as Bitcoin and blockchain technology. Blockchain technology will no doubt revolutionize the world. It should be no coincidence that one of our recent guests to Universidad Francisco Marroquín, Nick Szabo, has labeled blockchain technology “the Napster of finance.” While recognizing the value of cryptocurrencies and blockchain technology,
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Last year, non-financial companies issued $674.3 billion in corporate debt, a new record high. Low interest rates are wrecking the allocation of capital: the increase in debt is not used to invest, but rather to distribute cash to shareholders. However, there is one important caveat to this whole scheme that will threaten the U.S. economy.
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The European Central Bank embarked upon an enormous expansion of its balance sheet and is now running into its limits: there are simply not enough (eligible) assets to buy. How much time has ECB-chairman Mario Draghi left?
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The delinquency rate on loans is key in understanding banking. What percentage of loans is overdue for payment? And is a new banking crisis imminent?
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