Profile

Cover photo
Euro Crisis News Overview
1,289 followers|668,824 views
AboutPostsPhotosVideos

Stream

 
 
The Eurozone crisis continues to take centre stage. This column discusses how deep the EZ crisis is, how long it will last, and what should be the policy priorities. A number of findings emerge. First, the difference in labour market performance between the US and the Eurozone is one of degree but not of kind. Second, the economic consequences of the sovereign debt crisis will be mostly gone by 2018, but the political crisis will continue. Third, enforcing fiscal rules via political arm twisting is a recipe for disaster. Market discipline must instead be brought back, but without financial fragmentation. Limited and conditional Eurobonds are the best way to do so.
The Eurozone crisis continues to take centre stage. This column discusses how deep the EZ crisis is, how long it will last, and what should be the policy priorities. A number of findings emerge. First, the difference in labour market performance between the US and the Eurozone is one of degree ...
View original post
1
Add a comment...
 
 
PISANI FERRY: '...There are essentially two competing explanations. The first, the Secular Stagnation Hypothesis, has been proposed by Larry Summers. Its key premise is that the equilibrium interest rate at which demand would balance supply is currently below the actual interest rate........
................
The alternative explanation for the persistence of weak global growth has been best formulated by the Bank for International Settlements, an organization of central banks. The BIS maintains that excessively low interest rates are a big reason why growth is disappointing.
This explanation may seem even more paradoxical than the first, but the logic is straightforward: Governments often try to escape the hard task of improving economic efficiency through supply-side reforms and rely on demand-side fixes instead. So, when confronted with a growth slowdown caused by structural factors, many countries responded by lowering interest rates and stimulating credit.
But cheap credit promotes bad investment and excessive debt, which borrowers often are unable to repay. More fundamentally, investment is a bet that cannot pay off if growth is structurally depressed. Artificial growth promotion only ends in tears.
Furthermore, the BIS claims that credit may well aggravate structural deficiencies. Housing bubbles and investments in dubious projects result in a waste of resources and a misallocation of capital that ultimately dampens potential growth. The best example is perhaps Spain in the 2000s, where students left university before graduating to take part in the real-estate frenzy. Amassing useless concrete and losing human capital, the country lost twice......'

Read more at http://www.project-syndicate.org/commentary/explain-slow-global-growth-by-jean-pisani-ferry-2015-08#6HFtDgloqQTlQZ5W.99
Global growth continues to disappoint, with the IMF once again downgrading its forecast for this year. Is "secular stagnation" the cause, or is the monetary stimulus being used to fight that stagnation to blame?
View original post
1
Add a comment...
 
 
Yanis Varoufakis talks about his experience with Wolfgang Schäuble during the Euro crisis negotiations and reveals his Grexit plan.
View original post
1
Add a comment...
 
Misconceived from the outset as a monetary union unsupported by shared political and fiscal arrangements, the euro has always been a deeply flawed endeavour. These deficiencies were greatly compounded by overly moralistic imposition on debtor nations of fiscal austerity and hard money policies. In the absence of a change in mindset, which even now seems very unlikely and has no popular support in the German core, it is virtually impossible to see how the single currency can survive the next big downturn.

#EuroCrisis #Eurozone  
The euro in its present form will die not of the financial traumas that first threatened its existence, but of popular anger
1
Add a comment...
 
What this suggests is that the larger domestic demand-driven economies, typically those with large welfare states, will have a harder time living within export-led Europe. They will either have to violate their budgetary commitments or adjust downwards internally to compensate for their inability to devalue. These countries will be new ‘weak links’ in the Euro for whom heading for the exits may prove more appealing over time.

#EuroCrisis #Eurozone  
Mark Blyth looks beyond the Greek crisis and explains why the Euro's future enow depends on integration into a new emerging growth model.
4
Add a comment...
 
Making the most noise is Geert Wilders, controversial leader of the anti-immigration and anti-EU PVV party, who has developed a sideline in attacking the Greek bailouts, and says he will launch a vote of no-confidence against the government. If successful, such a vote could derail the deal.
“After the two previous bailouts, Mr Rutte promised he would not give another cent to Greece,” Mr Wilders said on Monday. “He is breaking the trust of the Dutch people.”

#EuroCrisis #Eurozone #Holland  
The Dutch government is facing a vote of no-confidence over the €86bn Greek bailout approved by eurozone finance ministers last week, with support for the deal from the prime minister’s own party still in question. MPs have been called back from
1
Add a comment...
In their circles
381 people
Have them in circles
1,289 people
Jim Sotirianakos's profile photo
Abe Rosmarin's profile photo
Bojan Mijušković's profile photo
Avag Khanedanyan's profile photo
Turansa's profile photo
farhad jafari's profile photo
son nguyen's profile photo
Dominique Egret's profile photo
DODD FRANK LORAX's profile photo
 
 
Macron tells it like it is.
French minister Macron is calling for "a new foundation of Europe", with fiscal transfers between richer and poorer countries.
1 comment on original post
1
Add a comment...
 
 
A slowdown in the economy of China and other emerging markets has prompted wild swings in stock prices, although markets were relatively calm on Wednesday.
The Federal Reserve is poised to raise interest rates in the United States as early as this month, possibly causing borrowing costs to rise in the eurozone before growth is strong enough.
Some economists are even warning again about the eurozone’s lapsing into deflation, a broad decline in prices that is considered poisonous to growth and employment.
An influx of refugees into Europe from Syria and other conflict zones, while outside the purview of monetary policy, adds to the uncertainty. Confusion among European leaders about how to deal with the crisis raises questions about the political unity that is essential to the survival of the eurozone.
These factors could undermine the positive effects of the bond-buying stimulus program, known as quantitative easing, that the European Central Bank began in March as a way to pump money into the eurozone economy and force down market interest rates.
Eurozone growth has improved since the central bank began its stimulus program, but there are new uncertainties in European and global economies.
View original post
1
Add a comment...
 
Note: There'll be few if any updates coming from me for the next couple of weeks.
1
Boris Krumov (SeoKungFu)'s profile photo
 
have a nice vacation !
Add a comment...
 
“Euro area policymakers have lived on one myth after another,” says Ashoka Mody, a former deputy director at the International Monetary Fund. “A process of groupthink coalesces around these myths: ‘We know it’s not going to work but we need to make it work and we need to seem supportive’ — and before you know it they start to believe it. And because there is no democratic accountability, they are free to make one error after another in terms of economic and political logic.”

#EuroCrisis #Eurozone  
Angela Merkel will today urge the German Bundestag to support a new €86bn eurozone rescue loan for Greece, as long as the crisis-hit country undertakes further reform and austerity measures. The moment will have a sense of déjà vu. Since the first
1
Add a comment...
 
CONVENTIONAL wisdom says the best way to ruin a friendship is to lend money to someone. Does that make the euro the worst idea the architects of the European Union ever had?
Until recently I’d have said don’t rush: The quarrels among the union’s 28 member-states over the Greek debt crisis have actually been helpful, I believed. They generated a new frankness in the sometimes all-too-consensual bloc. But what is happening now is going beyond healthy ventilation. It is starting to smell in Europe.

#EuroCrisis #Eurozone  
3
Add a comment...
 
Analysts say all bondholders will be affected, with junior bondholders almost certain to be wiped out altogether and large losses likely to be imposed on senior bondholders. Equity investors already face sharp losses after bank shares fell heavily since the start of this year. Depositors, though, will be safe, said the Eurogroup, which is made up of the eurozone finance ministers.

#EuroCrisis #Eurozone #Greece  
Greek-bank debtholders look set to lose a big chunk of money....And S&P 500 profits for the second quarter are expected to be down 15.8% from the second quarter of 2014, according to one measure. -- MoneyBeat
1
Add a comment...
People
In their circles
381 people
Have them in circles
1,289 people
Jim Sotirianakos's profile photo
Abe Rosmarin's profile photo
Bojan Mijušković's profile photo
Avag Khanedanyan's profile photo
Turansa's profile photo
farhad jafari's profile photo
son nguyen's profile photo
Dominique Egret's profile photo
DODD FRANK LORAX's profile photo
Story
Tagline
News items from the worlds media about the current euro crisis
Introduction
This page contains a running list of news articles about the current crisis in the Euro zone.
These are mostly whatever I stumble upon...