Luis Garicano
@lugaricano.bsky.social
Economist.
Professor @LSE SPP
My webpage:
https://sites.google.com/site/luisgaricano/
Substack (innovation, econ., Europe): SiliconContinent.com
My book on the Euro is out on June 2025.
Professor @LSE SPP
My webpage:
https://sites.google.com/site/luisgaricano/
Substack (innovation, econ., Europe): SiliconContinent.com
My book on the Euro is out on June 2025.
Pinned
Luis Garicano
@lugaricano.bsky.social
· May 28
The Return of the Doom Loop?
Higher yields expose Europe's unfinished banking union
www.siliconcontinent.com
As long term rates increase, the problems that created the doom loop in Europe are unsolved. Why? Italy's politicians like to have a captive buyer of debt. And German politicians like to control €2.5 trillion through local Sparkassen.
My post today:
www.siliconcontinent.com/p/the-return...
My post today:
www.siliconcontinent.com/p/the-return...
Reposted by Luis Garicano
I will never forget having to edit Jamal’s final, posthumous piece for the Washington Post, after he was murdered.
He was calling for free expression in the Arab world. You can read it here :
www.washingtonpost.com/opinions/glo...
He was calling for free expression in the Arab world. You can read it here :
www.washingtonpost.com/opinions/glo...
Opinion | Jamal Khashoggi: What the Arab world needs most is free expression
The Arab world needs a modern version of the old transnational media so citizens can be informed about global events.
www.washingtonpost.com
November 18, 2025 at 6:48 PM
I will never forget having to edit Jamal’s final, posthumous piece for the Washington Post, after he was murdered.
He was calling for free expression in the Arab world. You can read it here :
www.washingtonpost.com/opinions/glo...
He was calling for free expression in the Arab world. You can read it here :
www.washingtonpost.com/opinions/glo...
Reposted by Luis Garicano
🇪🇺"Europe was at the cutting edge of innovation in the lifetime of most Europeans alive today. It could again be a continent of builders, traders and inventors who seek opportunity in the world’s second largest market.
The European Union does not need a new treaty or powers."
@lugaricano.bsky.social
The European Union does not need a new treaty or powers."
@lugaricano.bsky.social
November 13, 2025 at 2:09 AM
🇪🇺"Europe was at the cutting edge of innovation in the lifetime of most Europeans alive today. It could again be a continent of builders, traders and inventors who seek opportunity in the world’s second largest market.
The European Union does not need a new treaty or powers."
@lugaricano.bsky.social
The European Union does not need a new treaty or powers."
@lugaricano.bsky.social
Reposted by Luis Garicano
Reposted by Luis Garicano
@lugaricano.bsky.social: You cannot win a trade war against the army that protects you. Our weakness is Russia. With a threatening Russia on our doorstep, and the Ukraine war ongoing, Europe cannot afford any break with the US www.siliconcontinent.com/p/the-turnbe...
The surrender in Turnberry
11 thoughts on the EU-US trade deal
www.siliconcontinent.com
August 4, 2025 at 2:20 PM
@lugaricano.bsky.social: You cannot win a trade war against the army that protects you. Our weakness is Russia. With a threatening Russia on our doorstep, and the Ukraine war ongoing, Europe cannot afford any break with the US www.siliconcontinent.com/p/the-turnbe...
Reposted by Luis Garicano
”time to admit QE's later rounds were clear policy errors”
Today in SiliconContinent, Klaus Masuch and I explain carefully the redistribution of risks that are an inevitable consequence of modern monetary policy (QE etc.) and the huge transfers of wealth that have in fact taken place as a result. www.siliconcontinent.com/p/the-hidden...
June 20, 2025 at 6:04 AM
”time to admit QE's later rounds were clear policy errors”
Today in SiliconContinent, Klaus Masuch and I explain carefully the redistribution of risks that are an inevitable consequence of modern monetary policy (QE etc.) and the huge transfers of wealth that have in fact taken place as a result. www.siliconcontinent.com/p/the-hidden...
June 18, 2025 at 3:41 PM
Today in SiliconContinent, Klaus Masuch and I explain carefully the redistribution of risks that are an inevitable consequence of modern monetary policy (QE etc.) and the huge transfers of wealth that have in fact taken place as a result. www.siliconcontinent.com/p/the-hidden...
Reposted by Luis Garicano
This turns the single market on its head, it's exactly what people like
@lugaricano.bsky.social have been talking about, when they say that the modern EC is failing at its raison d'être, where the economy is concerned.
Enforcing a single market.
www.siliconcontinent.com/p/the-myth-...
@lugaricano.bsky.social have been talking about, when they say that the modern EC is failing at its raison d'être, where the economy is concerned.
Enforcing a single market.
www.siliconcontinent.com/p/the-myth-...
The myth of the single market
Why Europe’s internal barriers are higher than Trump's tariffs
www.siliconcontinent.com
June 4, 2025 at 10:01 PM
This turns the single market on its head, it's exactly what people like
@lugaricano.bsky.social have been talking about, when they say that the modern EC is failing at its raison d'être, where the economy is concerned.
Enforcing a single market.
www.siliconcontinent.com/p/the-myth-...
@lugaricano.bsky.social have been talking about, when they say that the modern EC is failing at its raison d'être, where the economy is concerned.
Enforcing a single market.
www.siliconcontinent.com/p/the-myth-...
Reposted by Luis Garicano
I have a new book! Digital Platform Regulation. Fun analysis of what society should do to get some competition out of of our favorite gatekeeper platform. Relevant to the DMA and US antitrust remedies. And free! Download here:
som.yale.edu/centers/thur...
som.yale.edu/centers/thur...
Digital Platform Regulation
som.yale.edu
June 4, 2025 at 9:08 PM
I have a new book! Digital Platform Regulation. Fun analysis of what society should do to get some competition out of of our favorite gatekeeper platform. Relevant to the DMA and US antitrust remedies. And free! Download here:
som.yale.edu/centers/thur...
som.yale.edu/centers/thur...
As long term rates increase, the problems that created the doom loop in Europe are unsolved. Why? Italy's politicians like to have a captive buyer of debt. And German politicians like to control €2.5 trillion through local Sparkassen.
My post today:
www.siliconcontinent.com/p/the-return...
My post today:
www.siliconcontinent.com/p/the-return...
The Return of the Doom Loop?
Higher yields expose Europe's unfinished banking union
www.siliconcontinent.com
May 28, 2025 at 10:42 AM
As long term rates increase, the problems that created the doom loop in Europe are unsolved. Why? Italy's politicians like to have a captive buyer of debt. And German politicians like to control €2.5 trillion through local Sparkassen.
My post today:
www.siliconcontinent.com/p/the-return...
My post today:
www.siliconcontinent.com/p/the-return...
I explain today why the Single market is broken: mutual recognition is not what we think it is; harmonisation actually fragments, and the Commission is not doing its core job. If you only ever read one post of Silicon Continent, let it be this one.
www.siliconcontinent.com/p/the-myth-o...
www.siliconcontinent.com/p/the-myth-o...
The myth of the single market
Why Europe’s internal barriers are higher than Trump's tariffs
www.siliconcontinent.com
May 14, 2025 at 11:02 AM
I explain today why the Single market is broken: mutual recognition is not what we think it is; harmonisation actually fragments, and the Commission is not doing its core job. If you only ever read one post of Silicon Continent, let it be this one.
www.siliconcontinent.com/p/the-myth-o...
www.siliconcontinent.com/p/the-myth-o...
Reposted by Luis Garicano
How to pay for European defense - a nice review of our @bruegel.bsky.social report with @steinbacharmin.bsky.social and @jzettelmeyer.bsky.social by @lugaricano.bsky.social www.siliconcontinent.com/p/how-to-pay...
How to pay for European defense
The proposal for a European Defense Mechanism
www.siliconcontinent.com
April 9, 2025 at 9:24 AM
How to pay for European defense - a nice review of our @bruegel.bsky.social report with @steinbacharmin.bsky.social and @jzettelmeyer.bsky.social by @lugaricano.bsky.social www.siliconcontinent.com/p/how-to-pay...
Reposted by Luis Garicano
Ukraine is the test case. "If the bloc fails to act decisively, it risks remaining caught between a dysfunctional confederation and the 'ever closer union' it hopes to become." @lugaricano.bsky.social @politico.eu www.politico.eu/article/hung...
How to confront Orbán and save the EU
The legal tools to address this internal opposition exist — Europe just needs to use them, and meet the moment with courage.
www.politico.eu
March 22, 2025 at 11:40 AM
Ukraine is the test case. "If the bloc fails to act decisively, it risks remaining caught between a dysfunctional confederation and the 'ever closer union' it hopes to become." @lugaricano.bsky.social @politico.eu www.politico.eu/article/hung...
Reposted by Luis Garicano
This blog post by @pietergaricano.bsky.social while ostensibly about education makes crucial points about the limits of European policies, which are specially relevant as we think of industrial policy.
www.siliconcontinent.com/p/policies-w...
www.siliconcontinent.com/p/policies-w...
Policies without Politics
The European Commission has set its sights on education.
www.siliconcontinent.com
March 12, 2025 at 3:01 PM
This blog post by @pietergaricano.bsky.social while ostensibly about education makes crucial points about the limits of European policies, which are specially relevant as we think of industrial policy.
www.siliconcontinent.com/p/policies-w...
www.siliconcontinent.com/p/policies-w...
Reposted by Luis Garicano
Europe’s economy is in trouble. Our Professor of Public Policy @lugaricano.bsky.social recently featured on the @economist.com podcast “Money Talks” to discuss the challenges facing Europe’s leaders today. 🇪🇺🎧
www.economist.com/podcasts/202...
www.economist.com/podcasts/202...
The European economy has a Trump problem
Our podcast on markets, the economy and business. This week, we discuss the numerous threats to Europe’s shaky economy
www.economist.com
March 12, 2025 at 10:32 AM
Europe’s economy is in trouble. Our Professor of Public Policy @lugaricano.bsky.social recently featured on the @economist.com podcast “Money Talks” to discuss the challenges facing Europe’s leaders today. 🇪🇺🎧
www.economist.com/podcasts/202...
www.economist.com/podcasts/202...
Reposted by Luis Garicano
Reposted by Luis Garicano
Esplèndid text de @lugaricano.bsky.social sobre el concepte "externalitats sobre la seguretat nacional" i com aquest concepte pot ajudar a comprendre (i a actuar) els canvis sobre comerç internacional, proteccionisme i subvencions a la producció nacional
1/2
www.siliconcontinent.com/p/trading-wi...
1/2
www.siliconcontinent.com/p/trading-wi...
Trading with Bullies
Economics for a Hard-Power World
www.siliconcontinent.com
March 5, 2025 at 8:37 AM
Esplèndid text de @lugaricano.bsky.social sobre el concepte "externalitats sobre la seguretat nacional" i com aquest concepte pot ajudar a comprendre (i a actuar) els canvis sobre comerç internacional, proteccionisme i subvencions a la producció nacional
1/2
www.siliconcontinent.com/p/trading-wi...
1/2
www.siliconcontinent.com/p/trading-wi...
"Trading with Buliles"
How to think like an economist in a world of hard power.
- The national security externality
- Strategic sectors
- When integration encances resilience.
Including fascinating new work on Geoeconomics (Maggiori, Becko, Kooi)
www.siliconcontinent.com/p/trading-wi...
How to think like an economist in a world of hard power.
- The national security externality
- Strategic sectors
- When integration encances resilience.
Including fascinating new work on Geoeconomics (Maggiori, Becko, Kooi)
www.siliconcontinent.com/p/trading-wi...
Trading with Bullies
Economics for a Hard-Power World
www.siliconcontinent.com
March 5, 2025 at 8:32 AM
"Trading with Buliles"
How to think like an economist in a world of hard power.
- The national security externality
- Strategic sectors
- When integration encances resilience.
Including fascinating new work on Geoeconomics (Maggiori, Becko, Kooi)
www.siliconcontinent.com/p/trading-wi...
How to think like an economist in a world of hard power.
- The national security externality
- Strategic sectors
- When integration encances resilience.
Including fascinating new work on Geoeconomics (Maggiori, Becko, Kooi)
www.siliconcontinent.com/p/trading-wi...
Good point by Martin, which i missed at the time. Sorry.
Important thread from @lugaricano.bsky.social. I agree with his prescription - and that undermining banks' subsidised profits is a feature, not a bug, of digital cash. I'm more sympathetic to the ECB - but that's because I think once we have a digital euro, the limits will be impossible to sustain.
An alternative: Let people hold unlimited digital euros at the ECB. Use the money to buy public debt at market rates (like currently with reserves).
Get stability without sacrificing liquidity. But that would threaten banks' subsidized profits.
9/10
Get stability without sacrificing liquidity. But that would threaten banks' subsidized profits.
9/10
March 3, 2025 at 12:09 PM
Good point by Martin, which i missed at the time. Sorry.
Reposted by Luis Garicano
Ukraine needs to join the European Union as fast as possible.
Neither Trump nor Putin can veto this!
ANDREW DUFF advocates for the fast-track accession and calls for a revision of its terms and conditions:
verfassungsblog.de/fast-trackin...
Neither Trump nor Putin can veto this!
ANDREW DUFF advocates for the fast-track accession and calls for a revision of its terms and conditions:
verfassungsblog.de/fast-trackin...
March 3, 2025 at 11:22 AM
Ukraine needs to join the European Union as fast as possible.
Neither Trump nor Putin can veto this!
ANDREW DUFF advocates for the fast-track accession and calls for a revision of its terms and conditions:
verfassungsblog.de/fast-trackin...
Neither Trump nor Putin can veto this!
ANDREW DUFF advocates for the fast-track accession and calls for a revision of its terms and conditions:
verfassungsblog.de/fast-trackin...
Reposted by Luis Garicano
COVID ripped apart economies around the world. Amazingly most rich countries snapped back almost completely very quickly. By the end of 2021, 12 of 27 advanced OECD economies had unemployment rates below pre-COVID forecasts. The US did not. In fact, it was the fourth worst.
A 🧵
A 🧵
February 23, 2025 at 9:15 PM
COVID ripped apart economies around the world. Amazingly most rich countries snapped back almost completely very quickly. By the end of 2021, 12 of 27 advanced OECD economies had unemployment rates below pre-COVID forecasts. The US did not. In fact, it was the fourth worst.
A 🧵
A 🧵
Reposted by Luis Garicano
Our leader on #Merz and the debt brake. Get rid of it, and do it now.
www.economist.com/leaders/2025...
www.economist.com/leaders/2025...
Germany’s election victor must ditch its debt rules—fast
Friedrich Merz has weeks to shore up his country’s defences
www.economist.com
February 24, 2025 at 8:42 PM
Our leader on #Merz and the debt brake. Get rid of it, and do it now.
www.economist.com/leaders/2025...
www.economist.com/leaders/2025...
This Draghi piece is a quiet indictment on the
@EUCommission's failure on its core Treaty mandate: "establishing the internal market" & ensuring "free movement of goods, persons, services and capital."
His facts are devastating. A thread summarizing them and drawing some consequences.
1/
@EUCommission's failure on its core Treaty mandate: "establishing the internal market" & ensuring "free movement of goods, persons, services and capital."
His facts are devastating. A thread summarizing them and drawing some consequences.
1/
February 18, 2025 at 4:51 PM
This Draghi piece is a quiet indictment on the
@EUCommission's failure on its core Treaty mandate: "establishing the internal market" & ensuring "free movement of goods, persons, services and capital."
His facts are devastating. A thread summarizing them and drawing some consequences.
1/
@EUCommission's failure on its core Treaty mandate: "establishing the internal market" & ensuring "free movement of goods, persons, services and capital."
His facts are devastating. A thread summarizing them and drawing some consequences.
1/
Reposted by Luis Garicano
If you thought @jasonfurman.bsky.social 's FA piece was too subtle in its distinction between "tradeoff" as a well-defined economic concept and its common usage, you might get the point with this amazing post on the SuperBonus by @lugaricano.bsky.social.
www.siliconcontinent.com/p/how-to-inc...
www.siliconcontinent.com/p/how-to-inc...
How to torch 220 billion euros
When the ECB, Brussels, and Markets All Looked Away
www.siliconcontinent.com
February 17, 2025 at 4:13 PM
If you thought @jasonfurman.bsky.social 's FA piece was too subtle in its distinction between "tradeoff" as a well-defined economic concept and its common usage, you might get the point with this amazing post on the SuperBonus by @lugaricano.bsky.social.
www.siliconcontinent.com/p/how-to-inc...
www.siliconcontinent.com/p/how-to-inc...
Reposted by Luis Garicano
I guess it isn't to everyone. But the fact of the matter is that not only Germany is rapidly losing export markets to China, but Europe at large.
China's exports are growing at a 10% y-o-y clip, world trade around 3%, eurozone exports are languishing (and yes that also hits CEE by extension). 4/x
China's exports are growing at a 10% y-o-y clip, world trade around 3%, eurozone exports are languishing (and yes that also hits CEE by extension). 4/x
February 15, 2025 at 11:22 AM
I guess it isn't to everyone. But the fact of the matter is that not only Germany is rapidly losing export markets to China, but Europe at large.
China's exports are growing at a 10% y-o-y clip, world trade around 3%, eurozone exports are languishing (and yes that also hits CEE by extension). 4/x
China's exports are growing at a 10% y-o-y clip, world trade around 3%, eurozone exports are languishing (and yes that also hits CEE by extension). 4/x