Bloomberg View, (2017), “Portugal’s Comeback Is Only a Start”, 22 September If there’s a symbol of the breadth of the euro zone’s recovery, it’s Portugal. In 2011, it had to accept an international bailout on punishing terms. Today, three years after graduating from that program, growth and confidence have returned. As if to mark the achievement, S&P Global Ratings just raised Portugal’s sovereign rating to investment grade. Relevant Posts Vansteenkiste, Isabel, …Read More
Global Imbalances
Merler, Silvia, (2017), “Global Imbalances”, Bruegel, 21 September The IMF’s 2017 External Sector Report shows that global current account imbalances were broadly unchanged in 2016. Overall excess current account imbalances (i.e., deficits or surpluses that deviate from desirable levels) represented about one-third of total global imbalances in 2016, increasingly concentrated in advanced economies. Persistent global excess imbalances suggest that automatic adjustment mechanisms are weak. While the rotation of excess imbalances toward advanced …Read More
The Eurozone: Economists respond to Juncker’s State of the Union speech
den Haan, Wouter, Ellison, Martin, Ilzetzki, Ethan, McMahon, Michael, Reis, Ricardo, (2017), “The Eurozone: Economists respond to Juncker’s State of the Union speech”, VoxEU, 20 September The European Commission president’s suggestion that joining the euro should be compulsory for all EU members is not well received by over three quarters of leading economists responding to the latest Centre for Macroeconomics and CEPR survey. This column also reveals how, when asked …Read More
Growth That Reaches Everyone: Facts, Factors, Tools
Duttagupta, Rupa, Fabrizio, Stefania, Saxena, Sweta, (2017), “Growth That Reaches Everyone: Facts, Factors, Tools”, IMF Blog, 20 September Economic growth provides the basis for overcoming poverty and lifting living standards. But for growth to be sustained and inclusive, its benefits must reach all people. While strong economic growth is necessary for economic development, it is not always sufficient. Over the past few decades, growth has raised living standards and provided …Read More
Economic Bulletin, Issue 6
ECB, (2017), “Economic Bulletin, Issue 6”, September At its monetary policy meeting on 7 September 2017, the Governing Council assessed that while the ongoing economic expansion provides confidence that inflation will gradually head to levels in line with its inflation aim, it has yet to translate sufficiently into stronger inflation dynamics. The economic expansion, which accelerated more than expected in the first half of 2017, continues to be solid and …Read More
Europe’s fourfold union: Updating the 2012 vision
Veron, Nicholas, (2017), “Europe’s fourfold union: Updating the 2012 vision”, Bruegel, 19 September In the past half-decade, Europe’s financial union has been significantly strengthened but remains incomplete and is challenged by Brexit. No consensus has been found on fiscal union, and the existing fiscal framework based on administrative control is problematic. Economic union has not made material progress. Political union might have advanced further than many observers realise. This four-part …Read More
Germany Needs Some of its Own Medicine
Giugliano, Ferdinando, (2017), “Germany Needs Some of its Own Medicine”, Bloomberg View, 20 September This autumn, a newly elected European government will need to prove its reformist credentials to convince partners to press ahead with its plans for reforming the euro zone. While most will see this assertion as applying to France, it could equally refer to Germany. Angela Merkel, who is on course to win a fourth term as …Read More
Structural reform needs in the euro area: insights from a survey of large companies
ECB, (2017), “Structural reform needs in the euro area: insights from a survey of large companies”, Economic Bulletin Issue 66, September 2017 The importance of structural reforms as a means of increasing the rate of potential growth and strengthening the resilience of the euro area economy has been repeatedly emphasised by policymakers over recent years. But, so far, there have been few attempts to gauge the opinion of the business …Read More
What Germany Wants Isn’t What Europe Needs
Bloomberg View, (2017), “What Germany Wants Isn’t What Europe Needs”, 19 September If polls are correct, Angela Merkel is on track to win a record fourth term as German chancellor on Sept. 24. The temptation, after such a long run of electoral success, is to keep the formula unchanged and carry on giving the voters what they want. The trouble is, what makes sense for Germany and its people isn’t quite …Read More
Annual inflation up to 1.5% in the euro area
Eurostat/Annual inflation up to 1.5% in the euro area/18 September 2017 Euro area annual inflation was 1.5% in August 2017, up from 1.3% in July 2017. In August 2016 the rate was 0.2%. European Union annual inflation was 1.7% in August 2017, up from 1.5% in July 2017. A year earlier the rate was 0.3%. These figures come from Eurostat, the statistical office of the European Union. Relevant Posts Eurostat/Euro …Read More