Austerity is not the solution! - Foundation for European Progressive
... So Europe does not have a sovereign debt crisis. Europe is facing a balance of payments crisis and, more specifically, a current account crisis in the ‘peripheral’ economies as well as in the central countries which are still doing relatively well. But current account deficits can only be reduced by ...
... So Europe does not have a sovereign debt crisis. Europe is facing a balance of payments crisis and, more specifically, a current account crisis in the ‘peripheral’ economies as well as in the central countries which are still doing relatively well. But current account deficits can only be reduced by ...
First-Time International Bond Issuance—New Opportunities
... when investors retreated from risky asset classes. In 2008 and 2009 only two countries Georgia and Senegal - tapped the international capital market. As risk appetite improved, and investors resumed their “search-for-yield” in a low interest rate environment, sovereigns’ redirected again their atten ...
... when investors retreated from risky asset classes. In 2008 and 2009 only two countries Georgia and Senegal - tapped the international capital market. As risk appetite improved, and investors resumed their “search-for-yield” in a low interest rate environment, sovereigns’ redirected again their atten ...
The determinants of government yield spreads in the euro area
... For the countries hit by the sovereign debt crisis the yield differentials relative to the German Bund declined in the first quarter of 2012, thanks to the successful private sector involvement in the Greek debt restructuring plan (which eased the fears of a disorderly default by Greece), the fiscal ...
... For the countries hit by the sovereign debt crisis the yield differentials relative to the German Bund declined in the first quarter of 2012, thanks to the successful private sector involvement in the Greek debt restructuring plan (which eased the fears of a disorderly default by Greece), the fiscal ...
Government Debt
... was an energy crisis and economic problems in Europe and three6 more states joined. The EU grew to ten member states7 between the years 1981 and 1986. In 1993 a single market with the four freedoms of movement: goods, services, money and people, was implemented. The Treaty of Maastricht8 was introdu ...
... was an energy crisis and economic problems in Europe and three6 more states joined. The EU grew to ten member states7 between the years 1981 and 1986. In 1993 a single market with the four freedoms of movement: goods, services, money and people, was implemented. The Treaty of Maastricht8 was introdu ...
The Macroeconomic Effects of Official Debt Restructuring: Evidence
... Similar to what has been observed for restructurings involving privatelyheld sovereign debt (Asonuma and Trebesch 2016), Paris Club treatments are likely to have different macroeconomic effects, depending on the specific features of the agreement reached and the underlying circumstances of the count ...
... Similar to what has been observed for restructurings involving privatelyheld sovereign debt (Asonuma and Trebesch 2016), Paris Club treatments are likely to have different macroeconomic effects, depending on the specific features of the agreement reached and the underlying circumstances of the count ...
Financial and Sovereign Debt Crises
... if a financial crisis does occur, advanced countries are much better at managing the aftermath, thanks to their ability to vigorously apply countercyclical policy. Even as the recovery consistently proved to be far weaker than most forecasters were expecting, policymakers continued to underestimate ...
... if a financial crisis does occur, advanced countries are much better at managing the aftermath, thanks to their ability to vigorously apply countercyclical policy. Even as the recovery consistently proved to be far weaker than most forecasters were expecting, policymakers continued to underestimate ...
The ECB`s non-standard monetary policy measures
... measures have been aimed not at providing additional direct monetary stimulus to the economy but primarily at supporting the effective transmission of its standard policy. Hence, for the ECB, non-standard measures are a complement to rather than a substitute for standard interest rate policy. By sup ...
... measures have been aimed not at providing additional direct monetary stimulus to the economy but primarily at supporting the effective transmission of its standard policy. Hence, for the ECB, non-standard measures are a complement to rather than a substitute for standard interest rate policy. By sup ...
Long-term Government Bond Yields
... A trader’s main risk indicators are believed to be forecasts of: debt ratio, budget balance ratio and current account ratio where all are relative to their specific countries’ GDP. Also, they use the outstanding amount of domestic debt securities of the public sector in order to proxy the market cap ...
... A trader’s main risk indicators are believed to be forecasts of: debt ratio, budget balance ratio and current account ratio where all are relative to their specific countries’ GDP. Also, they use the outstanding amount of domestic debt securities of the public sector in order to proxy the market cap ...
Our currency, your problem? The global effects of the euro debt crisis
... in the government bond spread in both Italy and Spain vs. Germany (the assumption on how large is based on the statistical distribution of daily changes in the spread). Second, the movement must be motivated by a speci…c euro area event happening on that day and widely reported in the …nancial pres ...
... in the government bond spread in both Italy and Spain vs. Germany (the assumption on how large is based on the statistical distribution of daily changes in the spread). Second, the movement must be motivated by a speci…c euro area event happening on that day and widely reported in the …nancial pres ...
Characteristics of the 2009/2010 financial crisis in Greece
... however, ought to be the current sub-prime mortgage crisis, which started in the United States during 2007, and became excessively apparent in the end of 2008 with the collapse of the Lehman Brothers investment bank. The crisis that followed Lehman Brothers collapse sent far-reaching shock waves thr ...
... however, ought to be the current sub-prime mortgage crisis, which started in the United States during 2007, and became excessively apparent in the end of 2008 with the collapse of the Lehman Brothers investment bank. The crisis that followed Lehman Brothers collapse sent far-reaching shock waves thr ...
DEBT AND (NOT MUCH) DELEVERAGING
... be challenging. Furthermore, efforts to reduce fiscal deficits could be self-defeating— inhibiting the growth that is needed to reduce leverage. Nor are these economies likely to grow their way out of high government debt—which was essential to some previous successful deleveraging episodes, such as ...
... be challenging. Furthermore, efforts to reduce fiscal deficits could be self-defeating— inhibiting the growth that is needed to reduce leverage. Nor are these economies likely to grow their way out of high government debt—which was essential to some previous successful deleveraging episodes, such as ...
Recovery in the Eurozone
... Greece, Italy, Ireland, Portugal, and Spain) gradually decreased until they had reached the same level as the most creditworthy borrowers within the Eurozone’s core3 (i.e. Germany, France, Netherlands, Belgium, Austria and Finland). As lower interest rates in financial markets fed through into lower ...
... Greece, Italy, Ireland, Portugal, and Spain) gradually decreased until they had reached the same level as the most creditworthy borrowers within the Eurozone’s core3 (i.e. Germany, France, Netherlands, Belgium, Austria and Finland). As lower interest rates in financial markets fed through into lower ...
Phil Cosson Senior Municipal Advisor
... • May target mill rate rather than specific dollar amount of levy • Large expansion of tax base can present opportunity to borrow while minimizing mill rate impact: – Closure of a tax increment district – Large development outside of a tax increment district ...
... • May target mill rate rather than specific dollar amount of levy • Large expansion of tax base can present opportunity to borrow while minimizing mill rate impact: – Closure of a tax increment district – Large development outside of a tax increment district ...
GRMS Slides - Registration123
... Despite "sequestration" and fiscal gridlock, things are looking up Why ? The two main causes of the "Great Recession" (excessive indebtedness and house prices) have been tackled ...
... Despite "sequestration" and fiscal gridlock, things are looking up Why ? The two main causes of the "Great Recession" (excessive indebtedness and house prices) have been tackled ...
CURRENT ACCOUNT “CORE-PERIPHERY DUALISM” IN THE EMU
... (mainly Spain, Greece, Portugal, Italy and Ireland) deficits became large and persistent, another group of countries (mostly Germany, Belgium, the Netherlands, Finland and Austria) registered significant surpluses. This finding reflects what in the recent literature has been called “European core pe ...
... (mainly Spain, Greece, Portugal, Italy and Ireland) deficits became large and persistent, another group of countries (mostly Germany, Belgium, the Netherlands, Finland and Austria) registered significant surpluses. This finding reflects what in the recent literature has been called “European core pe ...
"Making Europe Safer": Wall Street Journal
... Europe needs large fiscal transfers and euro bonds to end the crisis. But a cleverly designed bond, coupled with key reforms in bank regulation and monetary policy, could ensure the euro zone's survival without a fiscal union. European bank regulators have treated all sovereign bonds as if they were ...
... Europe needs large fiscal transfers and euro bonds to end the crisis. But a cleverly designed bond, coupled with key reforms in bank regulation and monetary policy, could ensure the euro zone's survival without a fiscal union. European bank regulators have treated all sovereign bonds as if they were ...
The euro—fragmentation and the financial markets
... It also follows that the treaties confer no independent right to withdraw from monetary union. In this sense, Article 50 has not changed the position of eurozone Member States. If a Member State wishes to depart from the eurozone but wishes to remain a member of the EU, then this could perhaps be ac ...
... It also follows that the treaties confer no independent right to withdraw from monetary union. In this sense, Article 50 has not changed the position of eurozone Member States. If a Member State wishes to depart from the eurozone but wishes to remain a member of the EU, then this could perhaps be ac ...
Comparisons of OECD Debt
... And none of these led to default. 3 In more recent times, Japan has been living with a public debt ratio of over 150% without any adverse effect on its cost. So it is possible that investors will continue to put strong faith in industrial countries’ ability to repay, and that worries about excessive ...
... And none of these led to default. 3 In more recent times, Japan has been living with a public debt ratio of over 150% without any adverse effect on its cost. So it is possible that investors will continue to put strong faith in industrial countries’ ability to repay, and that worries about excessive ...
Growth and Productivity: the role of Government Debt
... the euro area, paying particular emphasis in their changing composition over time. We employ a panel of ten euro area countries (Austria, Belgium, Finland, France, Greece, Ireland, Italy, Netherlands, Portugal and Spain) over the period 1999:01-2010:12 (monthly data). We assess the role of an extend ...
... the euro area, paying particular emphasis in their changing composition over time. We employ a panel of ten euro area countries (Austria, Belgium, Finland, France, Greece, Ireland, Italy, Netherlands, Portugal and Spain) over the period 1999:01-2010:12 (monthly data). We assess the role of an extend ...
EU Summit Decisions +ECB Action welcomed in Markets
... demands\", so that \"during the next sessions, Stock Markets should keep their current Momentum and continue to benefit from this week's Good News\", reportedly observed this Friday a Barclay's expert. -“There was strong encouragement from the ECB for banks to take this liquidity to ensure t ...
... demands\", so that \"during the next sessions, Stock Markets should keep their current Momentum and continue to benefit from this week's Good News\", reportedly observed this Friday a Barclay's expert. -“There was strong encouragement from the ECB for banks to take this liquidity to ensure t ...
Eurozone - Doing Business | DOINGBUSINESS.RO
... incomes and holding back consumer spending to just 0.4% in 2014, and 1.1% in 2015. But both the private and public sectors still have to deleverage. Though 2014 is set to see much less aggressive fiscal tightening than in 2012 or 2013, there is much work still to be done over the medium term to redu ...
... incomes and holding back consumer spending to just 0.4% in 2014, and 1.1% in 2015. But both the private and public sectors still have to deleverage. Though 2014 is set to see much less aggressive fiscal tightening than in 2012 or 2013, there is much work still to be done over the medium term to redu ...
What Happened in Cyprus?
... government expenditure between wages, capital expenditure, social transfers, interest payments and other expenses. The total of wages and social transfers rose from 26% in 2008 to 30% in 2009 and remained at that higher level for the next four years, with the biggest rise going to social transfers. ...
... government expenditure between wages, capital expenditure, social transfers, interest payments and other expenses. The total of wages and social transfers rose from 26% in 2008 to 30% in 2009 and remained at that higher level for the next four years, with the biggest rise going to social transfers. ...
EMERGING SOVEREIGN GROUP, LLC
... The European policy response has constantly remained behind the curve and while LTROs and promises of renewed ECB bond buying have reduced the risk of a complete collapse of the financial system, there has been no meaningful change to long-term sustainability of public finances, the banking sector ...
... The European policy response has constantly remained behind the curve and while LTROs and promises of renewed ECB bond buying have reduced the risk of a complete collapse of the financial system, there has been no meaningful change to long-term sustainability of public finances, the banking sector ...
... the member states. They realised that the Southern member states suffered from weaker economic fundamentals than most of the Northern member states, problems that could not be compensated anymore by currency depreciations and higher inflation rates. An important variable was also the solvency situat ...
The IMF and Troika`s Greek bailout programs: an East
... started implementing pension cuts and tax reforms. The government also announced a preliminary privatization program in early 2010, defying massive domestic resistance and protests against the austerity measure. In return, the European creditors had released the first two tranches (15bn euro each) o ...
... started implementing pension cuts and tax reforms. The government also announced a preliminary privatization program in early 2010, defying massive domestic resistance and protests against the austerity measure. In return, the European creditors had released the first two tranches (15bn euro each) o ...
European debt crisis
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.