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Greek Tragedies
I am preparing a class on the crisis, and for the first time I have put together in a single place the actual numbers that I discussed sparsely in the past. Taken all together, they are even scarier....
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Be Smart, Borrow More!
Larry Summers has a very interesting piece on yesterday’s Financial Times. He argues that a few countries (the US, Germany, Japan, the UK; I would also add France) enjoy extremely low borrowing rates,...
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A Banking Union without a Fiscal Union?
I really enjoyed this piece by Perry Mehrling on the lethal embrace between sovereign debt and banks, and on how to dissolve it. Alex Barker and George Parker on the Financial Times seem to think that...
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Spiraling
Istat, the Italian statistical office, just released its Quarterly non-financial accounts for the General Government. As were to be expected, deficit is spiraling out of control (8% on the first...
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Of Useless Summits (and Related Posts)
So, we had another crucial summit, on June 28-29, followed by another also crucial Eurogroup, on July 9. Like all the ones that preceded, and the ones that will follow, they were trumpeted as the final...
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The Tree and the Forest
What to do of yesterday’s decision of the ECB? The tree looks very rather nice, the forest much less. First, a look at what Mario Draghi announced: “[...] the Governing Council today decided on the...
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It’s the Denominator, Stupid!
This weekend’s news was the downgrade of the UK by Moody’s. Chancellor Osborne took this as a sign that austerity should be strengthened even more, probably because he had little choice (never put all...
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Mr Weidmann and the Classics
Bundesbank President Jens Weidmann strikes again. In a tribune on today’s Financial Times he argues that to break the sovereign-bank nexus, the only solution is to impose, through regulation, an extra...
View ArticleThe Question of Debt Sterilization is not for Today. But it Needs to be...
Yesterday I read an interesting FT piece (signed by the editorial board) arguing against debt cancellation. The piece is interesting and in my opinion its title (The case against cancelling debt at...
View ArticleMasochistic Germany is a problem for all of us.
[Note: this is a slightly edited ChatGPT translation of an article for the Italian daily Domani ] Recently, the German Minister of Finance, the liberal Christian Lindner, announced his intention,...
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