Daily Archives: May 20, 2012

Eurointelligence – Home

ECB pulls plug on Greek banks (or how to start a bank run)

17.05.2012

ECB says it is not lending to under-capitalised institutions, as it seeks to protect its own balance sheet; ECB did not say which banks are affected; those that are now put on Emergency Liquidity Assistance, under which banks borrow from the national central banks at higher rates; for registered users only.

via Eurointelligence – Home.

Macro Matters: Europe’s woes and policy hedging

On the other hand what if all those calling for a greater inflation target are incorrect? What if a more expansionary monetary policy would have minimal difference? Well at the moment creditor nations are putting all their hopes on fiscal austerity and structural reforms doing the business on the growth front and stabilising debt/GDP ratios. Quite a big gamble wouldn’t you say? After all there is no explicit evidence that absent the power of external devaluation, fiscal austerity and attempts at increasing productivity will solve a sovereign debt crisis. Surely it would be better the hedge policy risks, to implement a wider array of policies that work in different ways so that if one doesn’t work, maybe another will. At the very worst we end up with a little excess inflation, but would that really make things worse than they are now? Could things get any worse from an economic viewpoint?

via Macro Matters: Europe’s woes and policy hedging.

IrishReferendum.Org: Information Explanations Fiscal Compact European Stability Mechanism

“Fiscal Compact” Treaty: Other Sites

via IrishReferendum.Org: Information Explanations Fiscal Compact European Stability Mechanism.

New Statesman – Exploding the myth of the feckless, lazy Greeks

Here is the first myth: This crisis is made in Greece. It is not. It is the inevitable fallout of the global crisis which started in 2008.Are there features in the Greek economy which made it particularly vulnerable? Yes – there is rampant corruption, bad management, systemic problems, a black market. All this has been explored ad nauseam. There are other factors, too; rarely mentioned. The crisis came at particularly bad time for Greece – four years after this tiny economy overextended in order to put on a giant Olympics and prove to the world it had “arrived”. When the crisis came, the country lacked the monetary and fiscal mechanisms to deal with it, because of its membership of the single currency.

via New Statesman – Exploding the myth of the feckless, lazy Greeks.