Fixed income markets drying up by the day. There is more liquidity in the Atacama desert #JunkBonds #HYCDX #ITraxx
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Europe Channel: Latest Posts
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Nouriel Roubini's Global EconoMonitor
Europe’s Short Vacation
Since last November, the European Central Bank, under its new president, Mario Draghi, has reduced its policy rates and undertaken two injections of more than €1 trillion of liquidity into the eurozone banking system. This led to a temporary reduction in the financial strains confronting the debt endangered countries on the eurozone’s periphery (Greece, Spain, [...]
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Ed Dolan's Econ Blog
What Happened When Poland’s Fixed Exchange Rate Experiment Failed: Lessons for a Euro Divorce
In a recent paper, Arnab Das and Nouriel Roubini compare exit from the euro area to a divorce. (See long form here, short form here.) When we hear that friends are heading for the divorce court, two questions immediately come to mind. Why did this arrangement, which seemed like a good idea at the time, [...]
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Europe
Portugal: Oro on the Douro
The sun glistens off the Douro River in early spring, creating a golden splendor on the ancient banks of Oporto. Like the dark meandering streets of the medieval city, Portugal is a mystery to most investors. Unlike its Iberian cousin, Portugal is thin on glitz and glamour. You never see the fleets of luxury vehicles [...]
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Europe
LTRO Failure Full Frontal as Spain 10 Year Approaches 6% Again
US data this week is relatively sparse (as usual in a post payroll week) leaving little evidence over the next few days to progress the seasonality debate but after a long weekend of derisking in mind and now in reality, Europe is front-and-center once again. Spain (and less so Italy) has decompressed to its worst [...]
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Europe
There’ll Always Be France
Le Figaro first revealed the plans for the transformation of the Eiffel Tower on November 11, 2011. “A remarkable plan has been revealed by Le Figaro newspaper which could see Paris’ most famous landmark covered in plants. “Starting as early as June 2012, the plan would be to cover the outside of the tower’s structure [...]
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Europe
UK: Growth Figures Become a National Lottery
Sometimes, and not just to get another reference to Charles “bicentenary” Dickens into the column, I feel Britain resembles a tale of two economies. I am not talking here about north versus south, or the City versus manufacturing. Rather, it is the very different picture presented by the official data, from the Office for National [...]
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Europe
EMU Reform – Still Far From the Right Solutions
President Monti in his Asian roadshow has declared that the Euro zone crisis is over. This statement, which is unwarranted for the real economy according to all major forecasts, is overly optimistic with reference to the sovereign debt crisis. The so-called “Treaty (!) on Stability, Coordination and Governance in the economic and monetary Union” released [...]
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The Wilder View
ECB Rates Policy is Clogged in Key Periphery Markets
How the Euro area (EA) will grow, according to Mario Draghi: The outlook for economic activity should be supported by foreign demand, the very low short-term interest rates in the euro area, and all the measures taken to foster the proper functioning of the euro area economy. In this post, I address Draghi’s point that the [...]
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Don't Shoot the Messenger
What Wolfson Did Next
At around 9:00am London time this morning Lord Wolfson held a press conference to announce the five finalists in his economics prize contest. I have done a podcast discussing the prize objectives and their implications with the Spain based British blogger Matthew Bennett. You can download it here. The first thing that needs to be said about [...]
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RGE Analysts
EZ Break-Up Stands to Benefit the Core
I’ve argued elsewhere on this blog that the weaker countries in the EZ stand to benefit from abandoning the euro. Rather than undergo an endless process of retrenchment inside the single currency, they could grow much faster following a nominal devaluation outside the euro area. This would not just benefit the peripheral countries, however. The [...]
