The European Central Bank is in a wait and watch mode, says Ansgar Belke, chair for macroeconomics at the University of Duisburg-Essen, and is unlikely to do something extraordinary, like it did in September. Mario Draghi’s pledge to do whatever it takes to preserve the euro and plans to buy unlimited bonds from the secondary markets to bring down borrowing …
One Man’s Opinion: The US Is Doing Pretty Well Compared To Europe
The US economy is doing pretty well compared to the European ones, says David Blanchflower, a professor of Economics at the Dartmouth College and a Bloomberg Television contributing Editor. Back from his trip to Europe, David says there is fear everywhere. In France, people are talking about Hollande’s dipping popularity while in Germany people are worried about unemployment rising. The …
Spain Is Hoping To Secure Bailout Without Troika Supervision—Will That Work?
The question that’s on everybody’s mind is should Spain seek for a bailout to tide over the current crisis? Even Europe seems to be divided on whether Madrid should actually seek ECB intervention. Spain must ask for ECB help now to avoid panic moments later, feels Luis Garicano, a professor of Economics at the London School of Economics. Since borrowing …
Why Spain May Not Seek A Bailout Anytime Soon
The European finance ministers met in Cyprus on Friday to discuss financial issues in the EU. One of the sticking points has been whether Spanish Prime Minister should seek ECB help by agreeing to adhere to the strict budgetary and fiscal conditions that are a prerequisite for such intervention. If Spain refuses to seek help formally, will the rally in …
Is Germany Prepared For A Greece Exit?
As the world looks forward to the outcome of meetings between German Chancellor Angela Merkel and French President Francois Hollande later in the week, it’s likely that Athens will make an exit from the eurozone soon as Berlin is unlikely to commit further funds for Greece, says Artur Fischer, co-chief executive of Boerse Berlin AG. Since Germany goes to elections …
Would The Euro Be Much Better Broken Up?
The cure for the ongoing euro crisis lies in that either Germany allows above average inflation or the Club Med countries witness depression in order to adjust for relatively higher costs, says Charles Dumas, Chief Economist and Chairman of Lombard Street Research Ltd. However, with China slowing down, German inflation is unlikely to go up since German exports depend largely …