Gross Financial Flows, Global Imbalances, and Crises
... limits on deficits. Do standard debt/deficit measures even make economic sense? Fiscal pact may help to avoid situations such as Greece. But not Spain or Ireland, where conventionally measured fiscal deficits and debt were low prior to the crisis. Defaultable debt, to instill market discipline and l ...
... limits on deficits. Do standard debt/deficit measures even make economic sense? Fiscal pact may help to avoid situations such as Greece. But not Spain or Ireland, where conventionally measured fiscal deficits and debt were low prior to the crisis. Defaultable debt, to instill market discipline and l ...
Policy Note - Levy Economics Institute of Bard College
... the prospects for renewed warfare among Europe’s traditional foes. Perhaps there is even something to be said here about the deep and profound impact that World War II must have had on the consciences of Europe’s leaders and public alike. The European experiment in integration—from the European Eco ...
... the prospects for renewed warfare among Europe’s traditional foes. Perhaps there is even something to be said here about the deep and profound impact that World War II must have had on the consciences of Europe’s leaders and public alike. The European experiment in integration—from the European Eco ...
EFSF raises €5 billion in two new bond deals
... The new 2% February 2056 bond was fixed at mid-swaps plus 60 basis points, implying a reoffer yield of 2.05%. A total of €1 billion will be issued, with order books around €1.1 billion. The spread on the new 0% March 2021 bond was fixed at mid-swaps minus 16 basis points, implying a reoffer yield of ...
... The new 2% February 2056 bond was fixed at mid-swaps plus 60 basis points, implying a reoffer yield of 2.05%. A total of €1 billion will be issued, with order books around €1.1 billion. The spread on the new 0% March 2021 bond was fixed at mid-swaps minus 16 basis points, implying a reoffer yield of ...
July 2011 - Cypress Financial Planning
... to the UK’s 77% of GDP, Greece’s 143% and Japan’s pre-earthquake 226%! Moreover, if bond investors began to question our government’s ability to repay its obligations, they would demand higher interest rates to compensate for the risk. However, a 10-yr note yields only 3.17% and a 5-yr note yields 1 ...
... to the UK’s 77% of GDP, Greece’s 143% and Japan’s pre-earthquake 226%! Moreover, if bond investors began to question our government’s ability to repay its obligations, they would demand higher interest rates to compensate for the risk. However, a 10-yr note yields only 3.17% and a 5-yr note yields 1 ...
Quicksilver Markets
... So, what is the big deal if Greece defaults and/or leaves the Euro currency? After all, Greece’s economy and debts are not that big in the scope of Europe’s overall economy. Some have argued that allowing Greece to restructure a meaningful portion of their debts in 2011 was a wise decision as it al ...
... So, what is the big deal if Greece defaults and/or leaves the Euro currency? After all, Greece’s economy and debts are not that big in the scope of Europe’s overall economy. Some have argued that allowing Greece to restructure a meaningful portion of their debts in 2011 was a wise decision as it al ...
Monthly strategy report february 2015
... The growth forecast for emerging regions is varied. The economic outlook for emerging countries is mixed. Among the elite club –the BRICs– there are significant differences. China is expected to lower its objective for growth to around 7%, since authorities must prevent excessive stimulus from creat ...
... The growth forecast for emerging regions is varied. The economic outlook for emerging countries is mixed. Among the elite club –the BRICs– there are significant differences. China is expected to lower its objective for growth to around 7%, since authorities must prevent excessive stimulus from creat ...
Greece Versus the Eurozone: Game of Chicken Enters Round
... optimal framework for sovereign budget deficits based on economic outcomes (as opposed to the somewhat arbitrary and rarely adhered to 3% deficit limit under the Maastricht Treaty). Barring this, policymakers could get creative with existing or new forms of rescue facilities. One such idea is for th ...
... optimal framework for sovereign budget deficits based on economic outcomes (as opposed to the somewhat arbitrary and rarely adhered to 3% deficit limit under the Maastricht Treaty). Barring this, policymakers could get creative with existing or new forms of rescue facilities. One such idea is for th ...
Greece debt - WESTDALE WORLD ISSUES
... How the debt crisis effects Canada Why Canadians should be concerned about a Euro collapse (source: CBC Dec 1, 2011) •Matthias Kipping, professor of policy and chair in business history at Schulich School of Business, said the euro collapse would mean countries would become more protectionist, whic ...
... How the debt crisis effects Canada Why Canadians should be concerned about a Euro collapse (source: CBC Dec 1, 2011) •Matthias Kipping, professor of policy and chair in business history at Schulich School of Business, said the euro collapse would mean countries would become more protectionist, whic ...
Micro- and Macro reforms: two sides of the same euro
... countries to perform their intrinsically desirable agendas of structural reform. As individual national fiscal stances cannot increase beyond what is allowed by the Stability and Growth Pact, one possibility might be to co-ordinate economic policies so that governments can embark on concerted reform ...
... countries to perform their intrinsically desirable agendas of structural reform. As individual national fiscal stances cannot increase beyond what is allowed by the Stability and Growth Pact, one possibility might be to co-ordinate economic policies so that governments can embark on concerted reform ...
The Decline of Austerity Politics
... billion euro ($5.6 billion) recapitalization of Portugal’s Caixa Geral de Depósitos, a state-owned entity and Portugal’s largest bank by assets. The plan includes a government injection of 2.7 billion euros which the EU has agreed not to consider state aid. European authorities are showing great fle ...
... billion euro ($5.6 billion) recapitalization of Portugal’s Caixa Geral de Depósitos, a state-owned entity and Portugal’s largest bank by assets. The plan includes a government injection of 2.7 billion euros which the EU has agreed not to consider state aid. European authorities are showing great fle ...
Document
... output in the UK would be £50 bn (3% GDP) more without any cuts in government spending... Second speaker: doubtless present output in the UK would be £50 bn more without any cuts... But without the cuts, bigger debt would be passed on. And if the increased probability of our ending up in a Greek-lik ...
... output in the UK would be £50 bn (3% GDP) more without any cuts in government spending... Second speaker: doubtless present output in the UK would be £50 bn more without any cuts... But without the cuts, bigger debt would be passed on. And if the increased probability of our ending up in a Greek-lik ...
Pulling these thoughts together, our line to take in response to
... There would be direct impacts on asset prices – equities, bonds, property etc. However one can think the impact could be different depending on the Member States. Indeed in Member States considered as “safe” and where pension funds hold a large amount of “safe” government bonds, the equity prices co ...
... There would be direct impacts on asset prices – equities, bonds, property etc. However one can think the impact could be different depending on the Member States. Indeed in Member States considered as “safe” and where pension funds hold a large amount of “safe” government bonds, the equity prices co ...
What caused the eurozone crisis?
... The fact that the doom loop has turned around for a while should not lead to complacency. The feedback mechanisms between weak sovereigns, banks and the economy still exist. This is what we wrote in June 2010: The Eurozone ‘ship’ is holed below the waterline. The ECB actions are keeping it afloat fo ...
... The fact that the doom loop has turned around for a while should not lead to complacency. The feedback mechanisms between weak sovereigns, banks and the economy still exist. This is what we wrote in June 2010: The Eurozone ‘ship’ is holed below the waterline. The ECB actions are keeping it afloat fo ...
In 1998 eleven EU member-states had met the convergence criteria
... states to enter European Economic and Monetary Union (EMU) and adopt the euro. They assist to establishing conditions required by optimal currency area theory. ...
... states to enter European Economic and Monetary Union (EMU) and adopt the euro. They assist to establishing conditions required by optimal currency area theory. ...
Economic and Monetary Union
... • The impact of the recent financial crisis was warning sign of the need to reconsider the criteria of entering euro zone. Darvas (2010) propose as a manner of solving these vicissitudes a recalculation of these indicators according to the recent developments across euro zone and extending the perio ...
... • The impact of the recent financial crisis was warning sign of the need to reconsider the criteria of entering euro zone. Darvas (2010) propose as a manner of solving these vicissitudes a recalculation of these indicators according to the recent developments across euro zone and extending the perio ...
The Euro at a Crossroads Wolfgang Münchau
... integrate their economic systems—or at least among countries wishing to become similar over a clearly defined time-horizon. There would have been no euro crisis, for example, if the initial membership had been confined to Germany, France, Benelux, and Finland. What constitutes similarity? I list fiv ...
... integrate their economic systems—or at least among countries wishing to become similar over a clearly defined time-horizon. There would have been no euro crisis, for example, if the initial membership had been confined to Germany, France, Benelux, and Finland. What constitutes similarity? I list fiv ...
Saving the euro: the Spanish perspective
... eventually put its economies on the path of sustainable growth. The conclusion here would be that there is a need to persevere with current efforts and not change policy, either at the domestic or European level. In Spain the equation would be structural reforms + public spending austerity = increas ...
... eventually put its economies on the path of sustainable growth. The conclusion here would be that there is a need to persevere with current efforts and not change policy, either at the domestic or European level. In Spain the equation would be structural reforms + public spending austerity = increas ...
Third Quarter Review Don`t Fight the Fed. Marty Zweig
... leadership in Europe, starting last June when the ECB announced its plan to monitor, insure, recapitalize or shut down banks as needed. More recently they introduced “outright monetary transactions” (OMTs), whereby the ECB directly purchases the sovereign bonds of a struggling member country by offe ...
... leadership in Europe, starting last June when the ECB announced its plan to monitor, insure, recapitalize or shut down banks as needed. More recently they introduced “outright monetary transactions” (OMTs), whereby the ECB directly purchases the sovereign bonds of a struggling member country by offe ...
The ECB`s policy of printing money will not lead to wealth creation
... the moral hazard problem). Consequently, banks turn out to be less resilient to withstand the adverse effects as the economic crisis is deepening. Deeper recession, in turn, is expected to worsen the Euro zone fiscal problems, especially if the Fiscal Compact is not accompanied with a growth plan fo ...
... the moral hazard problem). Consequently, banks turn out to be less resilient to withstand the adverse effects as the economic crisis is deepening. Deeper recession, in turn, is expected to worsen the Euro zone fiscal problems, especially if the Fiscal Compact is not accompanied with a growth plan fo ...
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... GDP level and perspective of slower GDP growth in a medium term means that financing becomes relatively more expensive and difficult to obtain. There is an increasing global competition for scarce financial resources both between private and public sectors (the former being crowded out by the latter ...
... GDP level and perspective of slower GDP growth in a medium term means that financing becomes relatively more expensive and difficult to obtain. There is an increasing global competition for scarce financial resources both between private and public sectors (the former being crowded out by the latter ...
Slide 1
... Divergence also within Emerging Europe with some countries getting large capital inflows ...
... Divergence also within Emerging Europe with some countries getting large capital inflows ...
Lidy Nacpil - Jubilee South Asia Pacific Movement on - UN-NGLS
... b. The transformation of the financial system should begin in many places and these places include the Bretton Woods institutions. The zero draft acknowledges and prescribes much too great a role to these institutions in reforms and solutions, without recognizing the negative impacts their policies ...
... b. The transformation of the financial system should begin in many places and these places include the Bretton Woods institutions. The zero draft acknowledges and prescribes much too great a role to these institutions in reforms and solutions, without recognizing the negative impacts their policies ...
European debt crisis
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The European debt crisis (often also referred to as the Eurozone crisis or the European sovereign debt crisis) is a multi-year debt crisis that has been taking place in the European Union since the end of 2009. Several eurozone member states (Greece, Portugal, Ireland, Spain and Cyprus) were unable to repay or refinance their government debt or to bail out over-indebted banks under their national supervision without the assistance of third parties like other Eurozone countries, the European Central Bank (ECB), or the International Monetary Fund (IMF).The detailed causes of the debt crises varied. In several countries, private debts arising from a property bubble were transferred to sovereign debt as a result of banking system bailouts and government responses to slowing economies post-bubble. The structure of the eurozone as a currency union (i.e., one currency) without fiscal union (e.g., different tax and public pension rules) contributed to the crisis and limited the ability of European leaders to respond. European banks own a significant amount of sovereign debt, such that concerns regarding the solvency of banking systems or sovereigns are negatively reinforcing.As concerns intensified in early 2010 and thereafter, leading European nations implemented a series of financial support measures such as the European Financial Stability Facility (EFSF) and European Stability Mechanism (ESM). The ECB also contributed to solve the crisis by lowering interest rates and providing cheap loans of more than one trillion euro in order to maintain money flows between European banks. On 6 September 2012, the ECB calmed financial markets by announcing free unlimited support for all eurozone countries involved in a sovereign state bailout/precautionary programme from EFSF/ESM, through some yield lowering Outright Monetary Transactions (OMT).Return to economic growth and improved structural deficits enabled Ireland and Portugal to exit their bailout programmes in July 2014. Greece and Cyprus both managed to partly regain market access in 2014. Their bailout programme is scheduled to end in March 2016. Spain never officially received a bailout programme. It's rescue package from the ESM was earmarked for a bank recapitalization fund and did not include financial support for the government itself.The crisis had significant adverse economic effects and labour market effects, with unemployment rates in Greece and Spain reaching 27%, and was blamed for subdued economic growth, not only for the entire eurozone, but for the entire European Union. As such, it can be argued to have had a major political impact on the ruling governments in 9 out of 19 eurozone countries, contributing to power shifts in Greece, Ireland, France, Italy, Portugal, Spain, Slovenia, Slovakia, and the Netherlands.