The Lost Decade through Pessoa’s bespectacled eyes

   Ever gloomy, ever versatile, Fernando Pessoa, the literary giant of the XXth century, has been summoned back from the dead for some after-life extra hours. The bored-office-clerk-turned-cultural-icon's name now serves as the acronym of the latest model of the Portuguese economy at the Bank of Portugal. As its authors state "PESSOA is a New-Keynesian DSGE model for a small open economy participating in a monetary union... with a rich fiscal policy setup" (more info here and here). Fittingly, as seen through Pessoa's eyes, Portugal's outlook is, well... kind of sad.