Greece default Archive

Juncker, EU minister quoted

Juncker, EU minister and erstwhile unofficial IMF policy spokeman: >    >   (email exchange) >    >   Referring to questions about Greece’s prospects for restructuring in the absence of a >   stabilization course: >    “If the donkey were a cat it could climb a tree. But it is not a cat. Nevertheless, this is a question that ...Read More

WARNING- Euro Zone Automatic Fiscal Stabilizers Deactivated!

I now believe that system risk in the euro zone is being grossly under discounted. The implied assumption for the major currency regions is that during a slowdown the automatic fiscal stabilizers- falling government ‘revenues’ and increased transfer payments- will kick in to increase deficit spending, and thereby add the income and ...Read More