How Europe Can Survive Without Introducing Sovereign Debt Limits

How Europe Can Survive Without Introducing Sovereign Debt Limits

photo: Chris Goldberg EU financial policymakers appear to be once more in a deadlock situation over proposals to limit the sovereign risk exposure of European banks. The strong exposure of some banks in the southern European periphery in their national sovereign’s debt was seen by many as one of the contributing factors to the ongoing sovereign […]

The IMF and the Next Crisis

The IMF and the Next Crisis

photo: World Bank Photo Collection The IMF has issued a warning that “increasing financial market turbulence and falling asset prices” are weakening the global economy, which already faces headwinds due to the “…modest recovery in advanced economies, China’s rebalancing, the weaker-than-expected growth impact from lower oil prices, and generally diminished growth prospects in emerging and low-income […]

A More Ambitious Agenda Needed to Combat Greek Debt

A More Ambitious Agenda Needed to Combat Greek Debt

photo: Karl-Ludwig Poggemann The July 12th euro area summit ended with a last minute agreement that avoided an imminent ‘Grexit’. Even before negotiating the third bailout program, the Greek government accepted several conditions imposed by its European partners. Among these, the most debated is the creation of a fund to monetize €50bn of public assets through […]

The External Debt of the Emerging Market Economies

The External Debt of the Emerging Market Economies

The outflow of money from emerging markets this year will most likely surpass inflows for the first time since 2008, and net capital outflows may total $541 billion according to the Institute of International Finance. The flows have been accompanied by currency depreciations, stock market collapses, and in the case of Brazil, a downgrade in its credit rating […]