German Investment: The Pedal Is Off the Metal

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 […]

Occupy Germany!

Germany is a short train ride away for 300 million EU citizens. Borders are open. Occupy in the name of the 99%. Stop austerity NOW. Go in peace. Obey all laws. Support the German Labor Unions. Do not leave until the Neoliberals are thrown out. Latest news from the front: March 18, 2015 at 9:32 […]

Euro-Greece Crisis: Time for a Compromise

As the hard talks on Greece’s bailout start again, there is no time to lose. A compromise is possible. Before the weekend, Eurogroup president Jeroen Djisselbloem said that “Greece wants a lot but has very little money to do that. That’s really a problem.” Unfortunately, Brussels is not exactly in a winning position either. Eurozone’s […]

The deal that may make or break the eurozone

It is no secret that the top priority of the new Greek government will be to negotiate a reduction in the country’s debt – as well as to broker softer terms on the austerity conditions forced by its creditors. Until as recently as the wee hours of Thursday, I thought that this would be unethical. Here is the […]

Why QE in the Eurozone Is a Mistake

Paul De Grauwe and Yuemei Ji (“Quantitative easing in the Eurozone”, VOX, 2015) have argued that quantitative easing (QE) can occur in the Eurozone without fiscal transfers.  This may be the case, but their analysis is fundamentally misplaced, as it is based on incorrect, incomplete or missing premises.  We think it would be a mistake for […]

Toward the Eurozone’s Defining Moment (Finally)

After Greek elections, Brussels and Berlin can no longer shun the issue of debt relief. The era of inflated projections is over. Before the New Year, the Hellenic parliament rejected the nominee of Prime Minister Antonis Samaras for president. Stavros Dimas was not likely to secure two-thirds of the required 300 votes. The former European […]

China’s EU Strategy Amid Greek Elections & Euro Uncertainty

Despite rising political risk in Greece and increasing economic uncertainty in Europe, China’s EU strategy will thrive in and benefit the Old Continent. On Christmas Eve, Li Keqiang had a phone conference with Greek Prime Minister Antonis Samaras, who told the Chinese premier that the Hellenic Parliament had voted through the agreement on the Piraeus […]

Europe’s Great Divide

In our previous post (here), we described post-electoral Europe’s stalemate in a European version of the  “Impossible Triplet” sketched by Dani Rodrik to describe the dilemmas of globalization. We drew a triangle given by the three constitutive dimensions of the EU: “European integration”, “National sovereignty”, “Democratic consensus”. Each one is incompatible with the other two.  […]

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