Are banks affected by their holdings of government debt?
Angeloni, Chiara, Wolff, Guntram. The strong relation between sovereign and banking stress is frequently emphasised, especially since the start of the European sovereign debt crisis. This working paper sheds light on the determinants of the link. It studies the stock market performance and the holdings of government debt of the banks stress tested by the […]
How not to be a lender of last resort
De Grauwe, Paul. While acknowledging that the massive amounts of liquidity injected into the eurozone banking system by the ECB were absolutely necessary to save Europe’s banking system, Paul De Grauwe now criticizes these lender-of-last-resort operations as ill-designed, making it likely that the ECB will have to discontinue them in the not so distant future. […]
Captured Europe
Acemoglu, Daron, Johnson, Simon Europe’s policy elite – the people who call the shots at the national and eurozone level – are in serious trouble. They have mismanaged their way into a deep crisis, betraying all of the lofty promises of unity and prosperity issued when the euro was created. The currency union may survive, […]
The Greek Tragedy, Act II
Zingales, Luigi. A Greek tragedy is typically composed of three acts. The first sets the scene. It is only with the second that the plot reaches its climax. For current-day Greece, the imposition of “voluntary” losses on the country’s private creditors represents just the end of the beginning. The real tragedy has still to unfold. […]
Greece’s new bonds: Is another default coming?
Kirkegaard, Jacob Funk. It was the dog that didn’t bark. Greece defaults and nothing happens in the markets. There was no contagion, no panic, and no bank meltdowns because it was fully anticipated. For the often maligned Eurozone crisis strategy of ‘kicking the can down the road’, the events were an extraordinary vindication and success […]
The Logic and Fairness of Greece’s Program
Blanchard, Olivier. To get back to health, Greece needs two things. First, a lower debt burden. Second, improved economic competitiveness. The new program addresses both. Πηγή: blog-imfdirect.imf.org πλήρες κείμενο
Ανταγωνισμός, σταθερότητα & ρύθμιση στον ευρωπαϊκό χρηματοπιστωτικό τομέα
Κατσίκας, Δημήτρης. Η χρηματοπιστωτική κρίση του 2007-08, οδήγησε το παγκόσμιο χρηματοπιστωτικό σύστημα στα πρόθυρα της κατάρρευσης. Η ανάλυση των παραγόντων που οδήγησαν στην χρηματοπιστωτική κρίση, σε συνδυασμό με την σοβαρότητα των επιπτώσεων της, οδήγησαν τα κράτη στην ανάληψη σημαντικών πρωτοβουλιών για την αναμόρφωση του χρηματοπιστωτικού συστήματος, τόσο σε εθνικό, όσο και σε διεθνές επίπεδο. Στην Ευρωπαϊκή […]
German Wage Growth and Greece
Dalton, Matthew. Greece has a competitiveness problem, but the rest of the euro zone isn’t helping as much as it could. Yes, euro-zone countries are pushing Greece to adopt all sorts of important economic overhauls aimed at improving Greek competitiveness. Πηγή: The Wall Street Journal πλήρες κείμενο
Officials See Much Hard Work Still Ahead for Greece
Greece’s second bailout package can make its debt sustainable, but Athens will have to stick firmly to the tough policies it agreed to until 2030, and may need more money after 2014, an updated debt sustainability analysis by international lenders shows. Πηγή: The New York Times πλήρες κείμενο
Looking beyond the Euro Area Sovereign Debt Crisis
Dailami, Mansoor. Three years into the euro area sovereign debt crisis, investors continue to shun periphery government bonds, European banks are under severe funding pressures in both the dollar and euro private term markets, and the euro area is facing an anemic growth outlook. On the face of it, the scenario portends gloom. But […]