Macroeconomics & the euro

Turning Japanese?

Turning Japanese?

30 April 2010
Japan has long had the highest level of public debt of any developed economy. The country’s public debt to GDP ratio is around 200 per cent of GDP, far in excess of even the EU’s worst performers.
Whatever happened to the G20?

Whatever happened to the G20?

Katinka Barysch
14 April 2010
George W Bush convened the first G20 summit in Washington in November 2008, at the height of the global financial and economic crisis. At two further summits in 2009, G20 leaders pledged to co-ordinate their economic stimulus packages (as well as exit strategies), avoid protectionism, address global imbalances, triple the resources of the IMF, and work out stricter rules for banks, hedge funds and other financial players.
There can be no eurozone stability without economic growth

There can be no eurozone stability without economic growth

01 April 2010
The German government believes that tougher fiscal rules are the solution to current strains in the eurozone. No doubt such rules are necessary. But they are not enough.
Germany

Why Christine Lagarde is right about Germany

Philip Whyte
26 March 2010
Greece’s recent fiscal travails have, slightly unexpectedly, thrown the spotlight on Germany’s current-account surplus. In mid-March, France’s finance minister, Christine Lagarde, urged Germany to do more to boost domestic demand – a call echoed by the European Commission’s president, José Manuel Barroso.
It’s the economics, stupid

It’s the economics, stupid

26 February 2010
There was always a risk that a one-size-fits-all monetary policy would lead to big divergences in inflation and competitiveness across the eurozone. This, in turn, would result in trade imbalances which would be difficult to reverse.
The new Commission's economic philosophy

The new Commission's economic philosophy

08 February 2010
The broad orientation of the Commission's economic policy is unlikely to change. It will continue to defend the single market, free trade and a tough competition policy.
How to restore financial stability

How to restore financial stability

Philip Whyte
12 January 2010
In 2008, the global financial system came close to collapse. Ever since, policy-makers have been busy overhauling the way it is regulated and supervised. Will this flurry of activity produce a more stable financial system – and if it does, at what cost?
Financial crisis

Rocky road back to growth

14 December 2009
There is no doubt that governments had to take exceptional steps in response to the financial crisis. Without such unprecedented action, many economies would have slipped into slump and probably deflation.
Sharing the burden of a weaker dollar file thumbnail

Sharing the burden of a weaker dollar

01 December 2009
The eurozone has suffered a deep recession – bigger than the US and about as bad as that in the UK. Public finances across the eurozone have worsened dramatically, and in some cases now look perilous.
What Eastern Europe can learn from the crisis

What Eastern Europe can learn from the crisis

Katinka Barysch
11 November 2009
It is 20 years since the Berlin Wall crumbled and political and economic freedom started spreading through Eastern Europe. Today, however, the region is mired in deep recession.
Euro

Greece: Nowhere to hide

08 October 2009
The Greek economy is on a very dangerous course. Unless the government takes steps to boost productivity and strengthen public finances, Greece faces a bleak future. 
Europe's imbalanced response to the financial crisis file thumbnail

Europe's imbalanced response to the financial crisis

Philip Whyte
01 October 2009
Since last year, politicians and regulators across the G20 have been hard at work trying to place the international financial system on a more stable long-term footing. Many critics believe they are not doing enough.
Issue 68 - 2009 file thumbnail

Issue 68 - 2009

Charles Grant, Clara Marina O'Donnell, Philip Whyte
25 September 2009
Talk of ‘exit’ is premature

Talk of 'exit' is premature

22 September 2009
The governor of the Bank of England (BoE), Mervyn King, has had a mixed financial crisis. He assumed that financial stability flowed from monetary stability – which we now know is not the case – and was very slow to recognise the extent of the crisis.
Insight

Anglo-Saxons and hedge funds: Culprits or scapegoats?

Philip Whyte
07 August 2009
Disasters often provoke unseemly bouts of finger-pointing. This has certainly been true of the global financial crisis. In the Anglo-Saxon world, libertarians have blamed it on governments, and governments on ‘bankers’. 
The G20 summit – a distraction?

The G20 summit – a distraction?

03 April 2009
The good news first. The summit delivered more than expected. The trebling of the funds available to the IMF goes well beyond anything expected and is very welcome.
Financial crisis

Europe's flagging response to the financial crisis

Philip Whyte
01 April 2009
Since the 1980s, many of the largest economies in the EU have developed unenviable reputations for protracted economic downturns followed by sluggish recoveries.
Euro notes

In the name of EU solidarity

Katinka Barysch
01 April 2009
Is a new iron curtain threatening to divide the European Union? Hungary’s prime minister, Ferenc Gyurcsany, raised the spectre last month, when he warned that the eastern members were descending into economic mayhem while the richer EU countries were looking on unsympathetically.