Commentators picked up on friction within the IMF-EU-ECB “troika” this week, as the Greek funding tranche was delayed on hangups as Christine Lagarde took a hardened stance and German leaders appeared to see a different picture to other stakeholders.
- Thomas Grennes and Andris Strazds write that while the U.S. has taken a different approach to the financial crisis than Europe’s “austerity-first” strategy, massive fiscal and monetary stimulus appears to have been an obstacle to structural change.
- Edward Hugh looks at the peculiar hangup on the Greek bailout tranche within the troika; namely a hardening of the IMF’s stance against German demands.
- Paolo Manasse focuses on risks to the IMF from delays in getting funding to Greece, noting the wildly off-mark economic projections for Greece by the troika.
- L. Randall Wray fleshes out Paul Krugman’s assertion that sovereigns trump bond vigilantes when it comes to interest rates.
- Nouriel Roubini comments on the correction in equities as the fate of the eurozone has diminished and many EMs slowed in 2012, anticipating heightened downside risk in 2013 from austerity in DMs.
- Dan Steinbock presents a turn in the eurozone saga toward the last triple-A-rated economies in Northern Europe, outlining negative developments in Finland.
- Megan Greene illustrates Germany’s myopia on the eurozone crisis, writing that if obstinate policy making continues, the best case is continued lip service to a banking union.
- Otaviano Canuto looks at the success of East Asian countries in moving from middle-income to high-income status, noting the importance of innovation, alongside skills development.
- Emre Deliveri detects fear on Turkey’s fiscal situation in the IMF’s latest report, alongside a recommendation that policy makers return to positive rates.
- Satyajit Das characterizes the U.S. fiscal cliff negotiations as a mere first step down a long road of fiscal and economic reform.
And now, the best of the rest …
- Why is the White House’s Council of Economic Advisers Helping the Republicans? By Robert Reich
- Chicago Fed: Slower Economic Activity In October by James Picerno
- William Black’s Comment to Krugman’s Twinkie Manifesto by William K. Black
- The Biggest Myth About the Fed by David Beckworth
- The Housing Recovery Rolls On by James Picerno
- CJR Says Fiscal Cliff is a CNBC Scam by Barry Ritholtz
- Why We Should Stop Obsessing About The Federal Budget Deficit by Robert Reich
- Moody’s France downgrade: French Turkey Au Sauce Hollandaise by Emre Deliveli
- Why Greece is a Model of Economic Mismanagement by Yves Smith
- Basta with Turkish Monetary Policy: Doing Business in Turkey by Emre Deliveli
- Spain’s Only Three Options for Recovery by Fabius Maximus
Finance and Markets
- Everything You Know About Investing is Wrong … by Barry Ritholtz
- Big Moves Coming in December, January and February by Toby Connor
- Adoboli Verdict: Harsh or Lenient? By David Nowakowski
- China Energy Outlook: China’s Energy Strategy for the Future by James Stafford
- A Perverse Relationship: Equity Prices and Inflation Expectations by James Picerno
- Insuring Against a Financial Crisis by Christopher Hartwell
- Can You Find Opportunity in Thanksgiving? By Jeffrey Miller