Louri-Dendrinou, Ε. (2014) “Economic and financial changes since the onset of the global and euro area crises“, LSE EUROPP Blog, Greece: Taking Stock, 06 Νοεμβρίου. With the introduction of the euro and the mispricing of sovereign (Greek) risk, a flux of funding inundated Greece and helped fuel an impressive growth rate (averaging 4%) in 2000-2008. Growth, combined with low inflation since monetary policy was managed by the European Central …Read More
Any hope that a revival of Spain’s housing market could help kick-start the country’s economy is likely to prove misplaced
Montalvo, J.G. (2014) “Any hope that a revival of Spain’s housing market could help kick-start the country’s economy is likely to prove misplaced“, LSE EUROPP, 06 Νοεμβρίου. Recent months have seen house prices in Spain rise for the first time in six years, after the housing sector was badly hit by the financial crisis. José García writes that one of the most damaging aspects of the crisis in Spain …Read More
David Einhorn on Pireus Bank: now I know what He thinks
David Einhorn on Pireus Bank: now I know what He thinks, ViennaCapitalist Blog, 05 Νοεμβρίου. I am grateful to reader IAthinker who commented on my recent Pireus bank post providing a link to David Einhorn’s presentation he gave at the recent Robin Hood conference, an annual gathering of Hedge Fund managers. At the conference, Einhorn reiterated his bullish stance on Pireus and Alpha bank, two of the biggest banks in Greece. As regular readers know, …Read More
What’s Bad for Germany Could Be Good for Europe
The Editors (2014) “What’s Bad for Germany Could Be Good for Europe“, Bloomberg View, 04 Noεμβρίου. Even those familiar with Europe’s plight will find the latest economic forecasts grim reading. You thought the outlook for the euro area was bad already. It’s getting worse, says the European Commission. That said, Europe works in mysterious ways. In this deepening pessimism, there might just be grounds for optimism. The projections make …Read More
Monetary policy and long-term trend
Goodhart, Α.Ε. C. & Erfurth, P. (2014) “Monetary policy and long-term trend“, VoxEU Organisation, 03 Νοεμβρίου. There has been a long-term downward trend in labour’s share of national income, depressing both demand and inflation, and thus prompting ever more expansionary monetary policies. This column argues that, while understandable in a short-term business cycle context, this has exacerbated longer-term trends, increasing inequality and financial distortions. Perhaps the most fundamental problem has …Read More
The effect of immigration on public finances
Preston, Ι. (2014) “The effect of immigration on public finances“, VoxEU Organisation, 05 Νοεμβρίου. Data on social attitudes show that the perceived burden of immigration on a nation’s public finances is one of the strongest economic concerns associated with hostility to immigration. Yet recent official reports suggest an important positive role for immigration in the long-run health of public finances. This column argues that there can be no general …Read More
A Crazy Idea About Italy
O’Neill, J. (2014) “A Crazy Idea About Italy“, Bloomberg View, 05 Νοεμβρίου. I’ve spent a good deal of my 35 years as an economic and financial analyst puzzling over Italy. Studying its economy was my first assignment in this business — as a matter of fact, Italy was the first foreign country I ever flew to. I’m just back from a vacation in Puglia and Basilicata. Over the decades, …Read More
ECB Needs Japanese Lessons
Gilbert, Μ. (2014) “ECB Needs Japanese Lessons“, Bloomberg View, 05 Νοεμβρίου. Economists like to warn about Japanification, the risk that a country will follow the desultory experience of Japan, which slumped into deflation in 1999 and for all intents never climbed out. As Europe slides closer to deflation, the European Central Bank should heed the historical experience and the current efforts by the Bank of Japan to resuscitate growth. …Read More
Five minutes with Robert O. Keohane: “We shouldn’t fool ourselves by believing that global governance will soon be made democratic”
Interview with R. Keohane (2014) Five minutes with Robert O. Keohane: “We shouldn’t fool ourselves by believing that global governance will soon be made democratic”, LSE EUROPP, 05 Νοεμβρίου. Can global governance through organisations such as the United Nations and the World Trade Organization ever be made properly democratic? In an interview with EUROPP’s editor Stuart Brown, Robert O. Keohane discusses the problems with establishing global democratic governance, the …Read More
The Single-Engine Global Economy
Roubini, N. (2014) “The Single-Engine Global Economy“, Social Europe Journal, 04 Νοεμβρίου. The global economy is like a jetliner that needs all of its engines operational to take off and steer clear of clouds and storms. Unfortunately, only one of its four engines is functioning properly: the Anglosphere (the United States and its close cousin, the United Kingdom). The second engine – the eurozone – has now stalled after …Read More