ArchivesCompetitivenessDebt CrisisEuro areaItalyTroika
European Policy Makers Don’t Understand But Markets Do
So here we are: the Italian yield curve is flat at above 7%; the government institution is in question; and the ECB is using its SMP purchase program as a carrot to drive austerity implementation in and Berlusconi out. Some would argue that the ‘market is irrational’ – Italy faces a liquidity not solvency crisis. That’s the ... Read more
CanadaDebt CrisisEuro areaTroika
The Euro Area Precedent for Policy Failure
Last weekend, a leaked Troika report (Troika = ECB + EC + IMF) revealed that European policy makers now comprehend that the Greek policy prescription is not working (bold by yours truly): The growth and fiscal policy adjustments assumed under the program individually have precedent in other countries’ experience, but experience to date under the program suggests that ... Read more