Euro Archive

CNBC’s John Carney on Krugman and MMT

>    >   (email exchange) >    >   On Sat, Nov 12, 2011 at 2:19 PM, Stephanie wrote: >    >   John Carney loving on us again Yes! Paul Krugman Goes MMT on Italy By John Carney November 11 (CNBC) — It seems pretty clear that the school of thought known as Modern Monetary Theory has made a ...Read More

Merkel comments

*DJ Merkel: “Euro Zone Solidarity Must Be Combined With Sound Budget Measures” To make sure unemployment never comes down and unit labor costs stay down. *DJ Merkel: Italy Will Put Through Planned Austerity Measures Soon Also to make sure unemployment never comes down and unit labor costs stay down. ...Read More

Talk still cheap – ECB writes the check again

Lots of talk, particularly from Germany about the ECB not writing the check, due to (errant) inflation concerns. But to no avail. In fact, with the Rubicon crossing decision to haircut Greek bonds 50% for the private sector’s holdings, expect the check writing to continue to intensify. And expect economies to continue ...Read More

Noda Makes Consumption Tax Hike Pledge At G-20 Summit

The world’s poster child for losing decades looks to stay a step ahead: (Nikkei)–Prime Minister Yoshihiko Noda vowed Thursday to gradually raise the nation’s consumption tax to 10% by mid the 2010s during a summit meeting of the Group of 20 leading economies in Cannes, France. The announcement at the summit has ...Read More

Blog Comment on Italy

This was recently posted by a reader: I’m from Italy so I can answer your question. The general and most accepted ideas in Italy are: “The problem is president Berlusconi.” “We need structural reforms!” (In every pub people love to say that, to feel themselves intelligent, the same that are in precarious ...Read More

the euro zone in transition

As previously discussed since inception, operationally the euro zone, much like every other nation with its own currency, will, one way or another, wind up with the ECB, the issuer of the currency, ‘funding’ fiscal deficits sufficient to meet any net savings desires in that currency, as well as funding the banking ...Read More

quick fx update

With crude/wti below 90 and looking soft, for anyone who wants to know my opinion, I’m now inclined to favor the $ over the euro. ...Read More

Angry Irish Voters Ready to Exact Revenge

Notice that they are angry at the government, not the currency arrangements, as previously discussed. What’s saving the euro is that it’s not intuitively obvious that the currency arrangements could possibly be part of the problem. Rates are low, there’s relatively little inflation, and and the foreign exchange value is reasonably strong ...Read More

ECB’s Trichet Says European Economy Showing ‘Encouraging’ Signs

The ECB has ‘written the check’ by buying national govt bonds in the secondary market in sufficient size to allow the national govs to fund themselves, and equities are coming back as solvency fears abate. There is still solvency risk, but now that risk is the risk of the ECB cutting off ...Read More

EU Daily | European Industrial Orders Increase for Third Month

As previously discussed, it is possible their deficits already got high enough and the euro low enough to support very modest growth when market forces intervened to stop further fiscal expansion. One problem now is proactive cuts can set them back if a combination of private sector credit and exports doesn’t expand ...Read More