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Spain’s fiscal architecture is more than a ledger‑sheet debate; it is, as economist Jesús Fernández‑Villaverde, the Howard Marks Presidential Professor of Economics at the University of Pennsylvania, reminds us, the very skeleton of the modern state. Drawing on Schumpeter’s maxim that “the state is taxation and taxation is the state,” Fernández‑Villaverde opens the conversation by weaving the American and French revolutions into a wider argument: when you refashion a nation’s tax machinery, you refashion the nation itself. That lens frames Catalonia’s renewed demand for a new financing model, not as a routine budget negotiation but as an existential redesign of the Spanish state.

Jesús details how Spain already operates one of the most decentralized fiscal systems in the world, “more latitude than most U.S. states,” he notes, yet Catalonia now seeks the bespoke privileges long enjoyed by the Basque Country and Navarra. The Regional Authority Index rates how much self‑rule and shared rule each country’s sub‑national governments actually wield. In its last update the index places Spain as the most decentralized unitary state in the sample and fourth overall among 96 countries. 

Those northern provinces collect every euro on their own soil and forward a modest remittance to the central treasury, a setup that Fernández‑Villaverde brands “a Confederate relic.” Extending it to Catalonia, he argues, would hollow out Spain’s common‑pool finances, deepen inter‑regional resentment and erode the principle of equal citizenship, while turning the national revenue service into little more than a mailbox for provincial checks.

Politics, of course, is the solvent in which these principles dissolve. Prime Minister Pedro Sánchez’s coalition leans heavily on Catalan and Basque votes; hence, the Jesús says, the Socialist leader flirts with a reform that his own party barons fear will be “the kiss of death”. Layer onto that an opaque, labyrinthine funding formula, ripe for local demagogues to blame Madrid or the neighbors, and Spain’s fiscal question becomes not merely who pays, but what kind of country the Spanish want to be.

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CPSI Director Rasheed and Economist John Cochrane discuss the structural complexities of the Eurozone’s monetary system, focusing particularly on TARGET2 balances. 

Trade imbalances within the Eurozone are no longer offset through private financial claims, but have instead created a vast network of public-sector IOUs among national and central banks.

The transformation of the Euro into a fiscal conduit has introduced new risks, especially in the case a country exiting the Eurozone, leaving its massive debts unpaid. Cochrane emphasizes that monetary and fiscal policies are inseparable, particularly in a high-debt environment, and suggests that the architecture of the Eurozone should reflect this integrated reality.

Join us for this informative episode as we also tackle contemporary banking mechanics, including CBDCs and the Fed's aversion to Narrow banking, alongside growing pains like ballooning US debt and a regulation-encumbered banking system.

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"Taipei won't have any formal western diplomatic ties in 5 years." This ominous prediction underscores the shift of trade and soft power in the Americas. 

On this episode we explore Taiwan's dwindling influence in the Caribbean and America's reactionary tactics to its own international relations complacency which has left the door wide open for its largest rival.

How does America plan to counteract China's foothold on its doorstep and what do these knee jerk policies mean for the vulnerable economies of Latin America and the Caribbean?

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In this no-nonsense conversation, Professor Carlos Rodríguez Braun — author of El Pensamiento de Milei — helps us decipher the often confusing worldview of Argentina’s president, Javier Milei. We go through the philosophical paths that took Milei from admiring Chicago-school thinkers to openly praising Rothbard’s anarcho-capitalism, and we examine the often jarring contradictions revealed by his alliances with figures like Bolsonaro, Abascal, and Meloni.

Key Points 

Anarcho-Capitalist or Just Radical?
How Milei’s shifting stances on economic policy blur the lines between classical liberalism, minarchism, and outright anarchism.

Bolsonaro, Abascal, & Trump—Strange Bedfellows?
Why a self-styled free trader cozies up to staunch protectionists and far-right politicians in pursuit of a new global “culture war.”

Social Policy Paradoxes
Milei rails against abortion as murder but leans libertarian on marriage (at least on the surface) —yet his conservative circle often contradicts these freedoms.

Culture War Gamble
Will Milei’s aggressive rhetoric on “gender ideology” undercut Argentina’s hard-won social freedoms and destabilize his own economic reforms?

The Future of Liberalism in Argentina
With the nation’s midterm elections looming, can Milei deliver on taming inflation and sparking growth or risk discrediting liberalism for a generation?

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Nostalgia can be a powerful force. This is extremely evident in the musings of our discussion on Jamaican Dancehall. Join us for a tea-time chat on Reggae’s vulgar, and culturally rebellious cousin.

Dancehall is a rather vibrant and colorful subgenre of Reggae rooted deeply in Caribbean culture, but the similarities are surface-level at best. The genre is criticized for its overt vulgarity, hypersexualization, and at times, problematic lyrics which have exported varying levels of lawlessness from Jamaica to its neighbors and beyond. 

Besides its lasting impact on language through the introduction of crude and derogatory terms like “Chi Chi Man” to the greater Caribbean, Dancehall has also been a potent vector for homophobia and other forms of discrimination throughout the region.

Are we bashing it? Yes. Will we stop singing it? No. Herein lies the great contradiction. Despite the criticisms leveled above, dancehall is recognized as an enduring and significant part of Caribbean identity and is firmly entrenched in contemporary depictions of “Caribbeana.” In this episode, we explore if it is possible to reconcile these attributes, and the genre’s ironic transition from a tool of oppression, to a tool of protest against itself.

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In this episode, Rasheed is joined by Lord Sewell of the British House of Lords, for an insightful discussion on education, race, and the socio-political dynamics in the UK and the Caribbean. They explore the myths of systemic discrimination, and the evolving narratives surrounding immigration, colonialism, and identity.

Mind the Gap
Lord Sewell highlights the challenges Afro-Caribbean students face in the UK, emphasizing the impact of family structure and socioeconomic conditions on academic performance. His program, Generating Genius, seeks to address gaps in STEM education by providing long-term mentorship to nurture talent.

It’s Complicated
We critique broad racial generalizations, emphasizing intra-group differences. Lord Sewell draws comparisons between Caribbean and African diasporas in the UK and the U.S., attributing disparities in performance to cultural and structural factors rather than race alone.

Legacy
Here we examine the persistence of colonial narratives in the Caribbean and the UK. Lord Sewell surmises most anti-colonial movements and discussions are performative, and calls for embracing the positive aspects of British influence while addressing present challenges more pragmatically.

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Full transcript at www.cpsi.media

Francisco Zalles, Ecuadorian Economist and Professor gives us an in-depth account of Ecuador’s journey to dollarization. 

A series of unfortunate events…
The economic crisis of the late 1990s, marked by a banking collapse due to external shocks (El Niño triggered the underperformance of the banana industry), poor fiscal policies, and mismanagement by the Central Bank, paved the way for drastic monetary reform in Ecuador.

A good policy is a good policy
President Jamil Mahuad's sudden decision to dollarize in 2000, at a time of extreme political and economic instability, was a last-ditch effort to save his administration. Despite limited planning, and many efforts to undermine sound monetary governance, the policy gained immediate popularity and stabilized the economy by halting inflation and restoring confidence.

Dollarization means development
Francisco sees dollarization not only as a stabilization mechanism but as a tool for institutional reform. It anchors private property rights over money, minimizes political interference, and enhances productivity by reducing inflationary uncertainty.

The future
Francisco’s dream? The closure of the Central Bank of Ecuador. This would solidify the benefits of dollarization. He underscores its potential as a safeguard against populism and a driver of sustainable economic growth.

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While Barcelona scapegoats tourism for its housing shortage, Madrid is setting the standard for development with initiatives to improve its housing stock. The “capital of capitalism” is once again employing proven liberal governance techniques to position itself as a premier city in Europe. Diego Sanchez de la Cruz returns to the show to discuss policies being enacted to expand living options for the fastest-growing city in Spain. 

By abolishing oppressive rent controls, improving mortgage accessibility, and unlocking new zoning for construction, Madrid is acknowledging the challenges that come with being the city of choice for many new residents and nomads, seeking new opportunities that also strengthen the city’s workforce and future-proof it for growth. Spain’s dynamic political landscape provides fascinating insight into juxtaposed methods of administration and poignant lessons for Latin America and the Caribbean.

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It's not all love, peace and brotherhood and if you're looking for Bob Marley, you're out of luck there too. Join CPSI director Rasheed Griffith and podcast producer Shem Best for an unfiltered foray into reggae, its historical starting point, political ramifications and cultural proliferation throughout the region and the world. 

Reggae is first and foremost a vehicle of protest. We explore the societal context which forced the hands of the Rastafarians, producing anthems of anti-establishment sentiment that resonated with a growing movement which was finding itself increasingly at odds with a post-colonial government.

What is "Babylon" and why are so many of these songs calling for us to burn it down? A greater understanding of rasta ideologies is required and we've got a basic crash course right here. 

Japanese Rastas may appear to be an improbable cultural anomaly, but it's a much more fitting match than you think. Reggae has become a global phenomenon, thus bringing the fight to seemingly unlikely locales. How has its message evolved over time and how effective is it today in a much more culturally mature and homogenous world.

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At 25 years of age, José Pérez Barboni is one of the youngest members of Panama’s National Assembly. Join us for a thought-provoking discussion on the intricate state of politics and governance on the isthmus and the peculiar system of elections that continues to shape the development of one of Latin America’s most pivotal economies.

More than a canal…

Panama, the proverbial (and literal) bridge of the Americas, is not defined simply by the infamous trans-oceanic marvel that is the Panama Canal. The country of just over 4 million sits at the forefront of an immigration crisis brought on by the veritable collapse of its neighbor Venezuela. Barboni, who is intimately familiar with the state of affairs, gives insights on what is being done to alleviate the strain on Panama’s resources, as well as bring regional and international attention to the precarious balance between humanitarian efforts and diplomatic action on the largest exodus in the modern history of the continent.

Fool me once!

Say no to colonial trade zones. José gives the rundown on local opposition to a mining deal and the true underlying cause of the early 2023 riots that paralyzed Panama. An aversion to repetition of the unfair conditions of the historic Panama Canal Zone and public frustration with a continued lack of government transparency fueled month-long protests which resulted in the rejection of an environmentally dubious mining contract.

The future could be bright.

How can we bring younger minds and opinions into governing roles? José shares his thought process and journey to the National Assembly. What can the rest of Latin America and the Caribbean learn from Panama’s prominent independent candidate culture and how has this shaped José’s party, Otro Camino?