Internal Devaluation, Inflation, and the Euro
Krugman, Paul. I’ve been writing for a long time about how the euro area needs more inflation. But I suspect that many readers don’t quite see how this ties into the macro story. So here’s something that may or may not clear things up — a stylized little model linking euro inflation and the adjustment […]
Saving the euro requires restoring Spain’s competitiveness
Delbecque, Bernard. The escalation of the crisis in the Eurozone calls for new measures to reduce yields on Spanish and Italian bonds. This column succinctly lays out the options and finds them wanting. It argues that sovereign bond purchases might not be sufficient to reassure investors. A credible solution will also require a coordinated strategy […]
Welcome to the ECB
Wyplosz, Charles. Financial markets once again pushed Eurozone leaders to act. European Central Bank President Draghi recently promised to “do whatever it takes”. This column argues that Draghi made an implicit commitment to act as lender of last resort to Eurozone governments. This means optimism may be justified – if only because it suggests that […]
Λανθάνουσες προτιμήσεις
Ο επικεφαλής της ΕΚΤ Μάριο Ντράγκι προειδοποίησε –δεν είναι η πρώτη φορά- ότι η ΕΚΤ θα κάνει ότι χρειάζεται, βεβαίως στο πλαίσιο της εντολής που τα κράτη μέλη έχουν δια της Συνθήκης δώσει σε αυτήν, προκειμένου να διασφαλίσει την ακεραιότητα του ευρώ. Η Άνγκελα Μέρκελ και ο Φρανσουά Ολάντ επιδοκίμασαν αυτή την δήλωση, εύγλωττα υπογραμμίζοντας […]