Greece and Portugal: Similar fundamentals but different outcomes?
Gros, Daniel. While acknowledging that Portugal is far from being in the same dire straits as Greece in terms of its levels of public debt and deficit, Daniel Gros points out in this Commentary that excess private consumption is Portugal’s real problem. And if this problem is not addressed, he warns that the eurozone might […]
For Whom The Bailout Tolls
Hugh, Edward. “On an optimistic view, that a deal was struck implies that neither side was ultimately willing to risk a Greek exit because they recognise that no one fully understands all the ramifications of such a decision. Under this scenario, when pressure again builds, the authorities will do the same: let Greece remain in […]
Good and Bad Deficits
Skidelsky, Robert. “Deficits are always bad,” thunder fiscal hawks. Not so, replies strategic investment analyst H. Wood Brock in an interesting new book, The American Gridlock. A proper assessment, Brock argues, depends on the “composition and quality of total government spending.” Πηγή: Project Syndicate πλήρες κείμενο
Evidence for the Monetary View of the Eurozone Crisis
Some observers argue that the current problems in the Eurozone are actually the result of a monetary crisis not a sovereign debt crisis. They acknowledge there are structural problems with European currency union but point back to the failure of the ECB to stabilize and restore nominal spending to expected levels during the crisis of 2008-2009 […]
Googlenomics and how LTRO might have ended the euro crisis
Market Monetarists like David Beckworth have long argued that the European crisis is not really a debt crisis or a fiscal crisis, but rather a nominal crisis. The crisis has been triggered not by too much debt, but rather than by overly tight monetary policy and the resulting drop in nominal GDP. Πηγή: The Market […]
Who lost Greece?
Pisani-Ferry, Jean. Failing an agreement with its private creditors and public lenders, Athens will not be able to meet the next debt repayment deadline of 20 March. Every day which passes underscores the complexity of the negotiation and ratchets up the risk of it being too late to avert default. Even if, as is likely, […]
Austerity and Growth
Krugnan, Paul. Watching Europe sink into recession – and Greece plunge into the abyss – I found myself wondering what it would take to convince the chattering classes that austerity in the face of an already depressed economy is a terrible idea. Πηγή: The New York Times πλήρες κείμενο
A Questionable Axiom Of Austerity
Dalton, Matthew. One of the most important stories of the European debt crisis is the worse-than-expected damage that austerity has inflicted on the Greek economy. Because economies around the European Union are taking less potent versions of the medicine prescribed for Greece, the missteps there offer some insight into what can be expected as austerity […]
From Argentina to Athens?
El-Erian, Mohamed. Let me set the scene: an increasingly discredited economic policy approach gives rise to growing domestic social and political opposition, street protests and violence, disagreements among official creditors, and mounting concerns among private creditors about a disorderly default. In the midst of all of this, national leaders commit to more of the same […]
A New European Growth Agenda
Legrain, Phipilppe. Austerity alone cannot solve Europe’s economic and financial crisis. Growth and jobs need to be promoted with equal zeal. European Union leaders now recognize this: kick-starting growth in 2012 was high on the agenda at the European Council’s meeting on January 30. But the big question remains: How? Πηγή: Project Syndicate πλήρες κείμενο