What Business Insider’s Mike Bird somewhat ironically calls #euroboom2015 seems to be well and truly with us. The WSJ’s Simon Nixon spelled it out for us in his “QE is Working Better than the ECB Dared Hope” article: “one month into the ECB’s €1 trillion ($1.06 trillion) quantitative-easing program, and ECB President Mario Draghi was [...]
According to several recent media reports, both the Greek government and the ECB are taking into consideration the possibility (for Greece) to issue a parallel domestic currency to pay for government expenditures, including civil servant salaries, pensions, etc. This could happen in the coming weeks as Greece faces a severe shortage of euros. It is [...]
The quantitative easing (QE) programme launched by European Central Bank (ECB) has been hailed as a long awaited decision, and the latest ECB press releases are pretty happy with the results. However, QE raises nontrivial questions regarding its medium-term effectiveness net of concomitant facors. Firstly, assessment of experiences of QE forerunners (United States, United Kingdom, [...]
The Global Oil Glut
The broader impact of low oil prices.
There is an ongoing discussion on whether Germany is underinvesting and whether it could do more to increase its growth through investment. An analysis of recent trends produced by Roubini (subscription only; referenced today in Bloomberg) shows that German investment is low when measured against its current ability to invest, and is unlikely to significantly [...]
The new momentum behind China's e-commerce policy will contribute to and reflect the transition from reliance on manufacturing, investment and net exports to reliance on innovation and consumption.