Kiguel, Miguel, (2011) ‘Argentina and Greece: More similarities than differences in the initial conditions’, www.voxeu.org, 17 August. A decade ago Argentina was in the midst of a severe economic crisis. This column argues that the episode offers lessons for the Eurozone today. Unless Greece takes major steps to improve its competitiveness and growth prospects, the country has little hope to get out of this crisis.
To stabilize the Eurozone, the ECB must set aside its fears and start buying governments’ bonds
De Grauwe, Paul, (2012), ‘To stabilize the Eurozone, the ECB must set aside its fears and start buying governments’ bonds’, blogs.lse.ac.uk, 31 July. 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 …Read More
Thanks to the ECB
Wyplosz, Charles, (2012), ‘Thanks to the ECB’, www.voxeu.org, 30 July. 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 the Eurozone has a great central banker …Read More
Greece and the Limits of Anti-Austerity
Roe, Mark, (2012), ‘Greece and the Limits of Anti-Austerity’, www.project-syndicate.org, 19 June. Is austerity dead? At last month’s G-8 meeting at Camp David, the German-led austerity program for the eurozone’s troubled southern members ran up against substantial resistance
Is Europe on a Cross of Gold
Sinn, Hans Werner, (2012), “The European Banking Union?”, www.project-syndicate.org, 13 June. Increasingly, one hears predictions that the euro will go the way of the gold standard in the 1930’s. And, increasingly, the reasoning behind such forecasts seems persuasive. But does that mean that the euro doomsayers are right?
The European Banking Union?
Sinn, Hans Werner, (2012), ‘The European Banking Union?’, www.project-syndicate.org, 13 June. In blatant violation of the Maastricht Treaty, the European Commission has come forward with one bailout plan after another for Europe’s distressed economies. Now it wants to socialize not only government debt by introducing Eurobonds, but also banking debt by proclaiming a “banking union.”
What History Can Explain About Greek Crisis
Bennhold, Katrin, (2012), ‘What History Can Explain About Greek Crisis’, www.nytimes.com, 6 June. 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.
The fiscal economics of a Greek exit
Gros, Daniel, (2012), ‘The fiscal economics of a Greek exit’, www.voxeu.org, 30 May. 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?
Greece and the eurozone: Managing the crisis
Tilford, Simon, (2012), ‘Greece and the eurozone: Managing the crisis’, www.cer.org.uk, 29 Μαίου. How the eurozone handles Greece will determine whether or not the single currency survives – and hence the future of the European Union as a whole.
Grexit’: Who would pay for it?
Alcidi, Cinzia, Giovannini, Alessandro, Gros, Daniel, (2012), ‘Grexit’: Who would pay for it?’, www.ceps.eu, 25 May. The eurozone countries are currently sitting on an aggregate exposure to Greece exceeding €300 billion. If the country were to exit the eurozone, it would certainly not be able to service its debt in the short run when the exchange rate overshoots. Over the longer run, however, the exchange rate is likely to return to a …Read More