ECB limited and conditional lending is not ‘what it takes’
Ghezzi, Piero. The ECB president, Mario Draghi, said he’d do “whatever it takes to save the euro”. This column asks what ‘whatever it takes’, means and whether the ECB is prepared to go that far. It argues that limited and conditional lending improves the odds of success but it is not the game changer needed. […]
Government bonds and their investors: What are the facts and do they matter?
Andritzky, Jochen. Public debt held by non-residents has been on the rise over the last few decades – that is until the global crisis. This column looks at how the ownership of government bonds in the G20 and the Eurozone. It finds that increased foreign bondholders bring costs as well as benefits. Πηγή: Voxeu πλήρες […]
One Money, (Too) Many Markets
Kotz, Hans-Helmut Kotz. Europe’s monetary union is screeching toward the abyss, unintentionally, but apparently inexorably. Greece will most likely not meet the criteria to receive further financial assistance from its eurozone partners and the International Monetary Fund. Europeans will then need to decide whether to let Greece go. The exit option would not improve Greece’s […]
To stabilize the Eurozone, the ECB must set aside its fears and start buying governments’ bonds
De Grauwe, Paul. Government bond markets in Europe remain volatile, with Spanish and Italian bond rates at near unsustainable levels. Paul De Grauwe argues that the only institution that can stabilize these markets by buying government bonds is the European Central Bank (ECB). The ECB must now overcome its risk averse nature and take advantage […]
Dos and Don’ts for the European Central Bank
Feldstein, Martin.Recent statements by European Central Bank President Mario Draghi and Bank Governor Ewald Nowotny have reopened the debate about the desirable limits to ECB policy. The issue is not just the ECB’s legal authority under the Maastricht Treaty, but, more importantly, the appropriateness of alternative measures.Πηγή: Project Syndicate πλήρες κείμενο
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 […]
End of game? Don’t bet on it
Wyplosz, Charles. The EZ crisis is once again on the march; Spain and Italy are under pressure. This column argues that policymakers are likely to fall back once again on a failed approach to avoid admitting past errors. Ultimately, however, EZ leaders will come around to the only way forward – the ECB underwriting both […]
A Redemption Pact for Europe: Time to act now
Bofinger, Peter, Buch, Claudia, Feld, Lars, Franz, Wolfgang & Schmidt, Christoph. EZ leaders have failed to tame the crisis. This column presents the English language version of the new plan by the German Council of Experts to resolve the crisis via “redemption bonds” and accompanying institutional reforms. Πηγή: Voxeu πλήρες κείμενο