I’ve written a new paper on TARGET2. This post introduces and links to the paper.
Category Archives: Euro Crisis
It’s Official: The Eurozone is in Recession
CEPR’s Business Cycle Dating Committee has declared the euro area economy as being in recession since 2011:Q3. Links and discussion here.
Greek Tragedy Turns to Farce
Thoughts on last night’s Eurogroup meeting are here.
Draghi Making a Big Mistake on Greek Bonds
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.
This Week’s Must-Read on the Euro Crisis
A fantastic new paper by Lee Buchheit and Mitu Gulati, as well as links to other papers by Lee and Mitu, discussed here.
Germany to Spain and Ireland: Drop Dead
I haven’t been as euphoric as some commentators about Ireland’s prospects of getting a “seismic” “game-changing” deal on bank-related debt. Still, even my relatively mild hopes have been dashed a bit by this evening’s statement by the German, Dutch and Finnish finance ministers. Thoughts here.
Another Step Toward A Federal Europe? Talks To Expand EU Budget Could Be Watershed Moment
Newspaper reports today suggest that greater moves towards an EU fiscal union, in the form of an expanded EU budget that could perhaps partially fund unemployment benefits in member states, are being considered. This is a further sign that Europe is going through a period of historic change. Thoughts on the benefits and problems associated with these proposals are here.
After the Draghi Plan: Can Germany’s Prescription for Europe Work?
I have been sensing over the past few weeks that markets have been so enthusiastic about Mario Draghi’s bond-buying plans that they have forgotten about the longer-term structural problems facing the euro. Some thoughts on this here.
Greece: We Need to Stop Confusing Default with Exit
The debate about “Grexit” continues to confuse the question of the sustainability of Greece’s debts with the question of whether Greece should stay in the euro. Some comments here.
Europe Needs to Change Its Disastrous Policy on Greece: Here’s Why and How
There has been a marked increase in the number of European politicians talking about a Greek exit from the euro. I think much of this commentary is based on resentment and a mis-understanding of the facts. Thoughts here.