The Greek Vise
Krugman, Paul. How much is the troika demanding from Greece? How tight is the squeeze? Here’s a look based on the most recent IMF report. Πηγή: The New York Times πλήρες κείμενο
Capturing the ECB
Stiglitz, Joseph. Nothing illustrates better the political crosscurrents, special interests, and shortsighted economics now at play in Europe than the debate over the restructuring of Greece’s sovereign debt. Germany insists on a deep restructuring – at least a 50% “haircut” for bondholders – whereas the European Central Bank insists that any debt restructuring must be […]
Europe’s new fiscal compact treaty does not outlaw Keynesianism and is a stepping stone to more progress
Kirkegaard, Jacob Funk. Europe’s new fiscal compact is seen by some as the death of Keynesian government spending. This column argues that such analysis is simply wrong. It says that there is still room for government spending in extreme situations, but that there are now more safeguards to maintain stability, reduce contagion, and placate German […]
Who’s afraid of sovereign bonds?
Merler, Silvia, Pisani-Ferry, Jean. The crisis has underlined the strong interdependence between the euro-area banking and sovereign crises. To understand the role domestic banks have played in holding sovereign debt, a breakdown of government debt by holding sectors is required. The data shows that at the start of the crisis, most continental euro-area countries were characterised […]