Some thoughts on the Greek situation and the ongoing negotiations in Brussels.
Lots of people I’ve spoken with about the dreaded Anglo promissory notes are mystified at why the Irish government seems willing to replace the notes with a 40-year bond. Isn’t it just replacing one kind of debt with another? Won’t we just end up paying more over the long-run? Here‘s a post where I try to answer these questions. Warning: This is a tricky topic and it’s an unusually wonkish post.
I’ve written a new paper on TARGET2. This post introduces and links to the paper.
CEPR’s Business Cycle Dating Committee has declared the euro area economy as being in recession since 2011:Q3. Links and discussion here.
Thoughts on last night’s Eurogroup meeting are here.
There have been a lot of debates in recent weeks about how the Euro area’s banking union should work in practice. I’ve written two posts relating to different aspects of this issue. This one discusses the question of whether monetary policy should be separated from banking supervision while this one discusses whether the ECB should supervise all Euro area banks or just the large ones.
I’ve been very busy lately so I haven’t had much time for blogging. Here is a belated assessment of where Ireland stands after a week in which it became clear that Ireland was “a special case” (even if nobody knows quite what that means).
After supposedly clarifying their position on equal treatment in relation to their bond purchases, Mario Draghi’s comments on the ECB’s holdings of Greek bonds seem to muddy the waters again. My thoughts here.
A fantastic new paper by Lee Buchheit and Mitu Gulati, as well as links to other papers by Lee and Mitu, discussed here.
My thoughts on Enda Kenny’s Time magazine cover are here.