The Accidental Empire
Soros, George. It is now clear that the main cause of the euro crisis is the member states’ surrender of their right to print money to the European Central Bank. They did not understand just what that surrender entailed – and neither did the European authorities. Πηγή: Project Syndicate πλήρες κείμενο
The Wrong Austerity Cure
Tyson, Laura. Fiscal profligacy did not cause the sovereign-debt crisis engulfing Europe, and fiscal austerity will not solve it. On the contrary, such austerity has aggravated the crisis and now threatens to bring down the euro and throw the global economy into another tailspin. Πηγή: Project Syndicate πλήρες κείμενο
Lessons from Latvia
Blanchard, Olivier. In 2008, Latvia was widely seen as an economic “basket case,” a textbook example of a boom turned to bust. From 2005 to 2007, average annual growth had exceeded 10%, the current account deficit had increased to more than 20% of GDP. By early 2008 however, the boom had come to an end, […]
Can Spain and Italy export their way out of trouble?
Dadush, Uri, Wyne, Zaahira. For many, the origin of the Eurozone crisis is a lack of competitiveness among the periphery countries. This column looks at Spain and Italy and argues that in order to emerge from crisis, they must rely less on domestic demand and more on their tradable sector. Πηγή: Voxeu πλήρες κείμενο
Cleaning up the mess: Bank resolution in a systemic crisis
Gros, Daniel, Schoenmaker, Dirk. In Greece, the problem is an insolvent government bringing down the banks. In Spain, the problem is now insolvent banks bringing down the government. This column argues that despite their differences, the potential costs to the rest of Europe mean that both problems require a European solution. Πηγή: Voxeu πλήρες κείμενο
What History Can Explain About Greek Crisis
Bennhold, Katrin. The decision to suspend Greece from the common currency became inevitable when it emerged that Athens had fiddled with the accounts yet again amid chronic economic weakness, forfeiting what credibility in the international arena it still had left. Πηγή: The New York Times πλήρες κείμενο
Euro Bonds With Strings Are Europe’s Best Way Forward
Crook, Clive. Whether Greece keeps the euro or abandons it, the European Union must strengthen its defenses against a wider attack on its monetary system, and soon. This will inevitably require steps toward fiscal union. Yet popular support for deeper political integration in the EU, never high to begin with, is lower than it has […]
Spain’s Banking Rescue Should Become Example for Europe
Europe’s leaders can’t save their currency union without figuring out a way to salvage the region’s banks. Spain is a perfect place to start. Perhaps no country better illustrates the mutually reinforcing links among the euro area’s banking, sovereign-debt and economic crises than Spain. Its banks are largely paralyzed amid concerns about heavy losses on […]
An Argentine Guide to the Greek Crisis
Velasco, Andres. Policymakers in Europe seem to be surprised at the ongoing bank run in Greece (and the nascent run in Spain). They should not be. Anyone familiar with emerging-market meltdowns knows that a financial crisis nearly always follows a fiscal crisis. Πηγή: Project Syndicate πλήρες κείμενο
The fiscal economics of a Greek exit
Gros, Daniel. If Greece leaves the Eurozone, many expect that it that will be forced to default. This column argues that need not be the case. How much would Greece’s creditors lose if the country were to exit the Eurozone? Πηγή: Voxeu πλήρες κείμενο