Author: Claus Vistesen

Claus Vistesen

Claus Vistesen is a Danish economist who specialises in macroeconomics. His primary research interests include demographics, macroeconomics and international finance.

Here are my most recent posts

The lower bound of central bank effectiveness

The lower bound of central bank effectiveness

Through the lens of someone looking at economies with rapidly ageing populations we can simply say that this problem arises because there isn’t any consumption to pull forward! Fisher’s interest theory was always valid, it is merely that in the context of a rapidly ageing population the consumption smoothing mechanism breaks for obvious and quite logical reasons. Quite simply, even in ZIRP you are not stealing a sufficient amount of “future” growth to kick-start the recovery because such future growth is not there.

And the award for EM safe haven of choice goes to …

And the award for EM safe haven of choice goes to …

By Claus Vistesen … China! At least this is the conclusion from some fascinating number crunching from JPMorgan’s Flow & Liquidity team in their report last week. I had a feeling that this was the case looking at the surge in Chinese FX reserve growth (capital inflows) in the past 6-12 months, but it is still interesting to see such […]

The Civil War in Macroeconomics

The Civil War in Macroeconomics

In principle I think Krugman is right to have a go at micro foundations. I have criticised the concept myself for ignoring the potential for research paradigms that are purely macroeconomic in nature. In this sense, the fact that Krugman puts his weight behind this critique is important.

The Denial on Housing in Spain

The Denial on Housing in Spain

This post highlights a brilliant piece of journalism by Bloomberg reporters Sharon Smyth, Neil Callanan and Dara Doyle. The story takes us to Spain and Ireland and the former’s denial with regards its housing market. A passage that was particularly staggering was the comments by Miguel Angel Garcia Nieto, mayor of Avila (a town showcased in the article), that this is just an interim soft spot as a result of the crisis and that oversupply and overcapacity will eventually be absorbed. Hope, as they say, springs eternal.

Time Unlikely To Be A Healer For Portugal’s Economy

Time Unlikely To Be A Healer For Portugal’s Economy

Despite comparisons with Greece, Portugal is not in entirely the same situation, at least not yet it isn’t. Crucially, Portugal is currently under no obligation to deal with international or national creditors to increasing government debt issuance courtesy of joint aid programme administered by the EU and the IMF. So far so good. Portugal has time and while I am as certain as an economist can be that the country will need debt restructuring, the time between here and there may still prove crucial.