Full Text: ECB says Europe has “high uncertainty and intensified downside risks”
"Based on its regular economic and monetary analyses, the Governing Council decided to reduce the key ECB interest rates by 25 basis points."
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The Euro Zone Race to the Bottom
Imposed austerity does directly alter output and employment- for the worse. Additionally, for all practical purposes, there is universal global support for austerity as the means supporting global output and employment. So even if the euro…
Full Text: Federal Reserve Open market Committee Statement on Rate Decision
"The Committee also decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the…
The German labour market miracle
Jobs and the lack of them are top of the agenda for policymakers and increasingly groups of protestors gathered in the financial districts of New York, London, and elsewhere. Unemployment in these countries is in danger of reaching 10%. In…
Greek credit default swap shenanigans
The big question–apart from how many investors they will get to go along with this, given that they couldn’t reach their target of 90% investor participation when the write-down was only going to be 21%–is whether this will trigger a CDS…
Deleveraging, Banks and Economic Recovery in Ireland
The challenge that the Irish economy faces can best be described in the context of flows and stocks of assets and liabilities. Under the Memorandum of Understanding (MoU) with the IMF/EU/ECB Troika, Ireland must implement a severe fiscal…
How not to resolve a banking crisis
Much of macroeconomic policymaking is trial and error. This column discusses calamitous error on the part of Iceland’s policymakers, in the hope that others can at least try something else.
A bad haircut
Are these haircuts on Greek debt really such a good idea? Or are they really just a stopgap that will make things all the worse in the long-run?
Sure, Mr. Market seems to think they’re fantastic. But then, Mr. Market has always been…
Quantitative Easing!!!
The BoJ announced today that it will expand its asset purchase programme by JPY5trn (USD66bn), with all the purchases being directed at JGB's. Add that to the GBP75bn (USD120bn) by the BoE, CHF50bn (USD57bn) by the SNB and the EUR341bn…
Was the IMF programme in Iceland successful?
According to the IMF, Iceland has graduated from its Fund-supported programme with unqualified success. This column begs to differ.