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Eurozone faces first regional bankruptcy as debt debacle stalks Austria's Carinthia
Ambrose Evans-Pritchard / Telegraph
Fitch has stripped Austria of its AAA rating, adding that 'within a short space of time the debt dynamics of Austria have deteriorated significantly'
Related: Euro zone data starting to surprise on the upside
Mike Peacock / MacroScope
Has the euro zone economy turned a corner?
Related: A scarcity of government bonds could pose problems for the ECB's quantitative easing programme
EUROPP
The European Central Bank's quantitative easing programme is scheduled to start this month. John Doukas writes that while the programme might well boost EU economies, there remain significant question marks over whether it is sufficient to generate substantial growth in struggling Eurozone countries. He also notes that a scarcity of ...
 
RBI rate cut: 6 ways in which it will impact you
Times of India
Reserve Bank of India governor Raghuram Rajan on Wednesday brought down its key policy rate by 25 basis points citing that the fiscal consolidation was better than what numbers show.
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Related: India Cuts Interest Rate for Second Time in 2015
WSJ
India's central bank surprised markets Wednesday morning with a cut to its key lending rate for the second time this year, as it joined a world-wide trend of monetary easing.
Related: RBI Takes Aim at Rupee's Strength
WSJ
The Reserve Bank of India joined other central banks in voicing concerns about a strong currency as it cut interest rates for the second time this year.
Related: RBI cuts repo rate by 25 basis points citing improved combined fiscal deficit
Times of India
The Reserve Bank of India (RBI) lowered its policy repo rate by 25 basis points to 7.5 percent on Wednesday, delivering its second cut this year on the back of easing inflation and a government commitment to fiscal discipline.
Related: Why India's economic plans are bolder than you think
Sanjay Sanghoee / Fortune Finance
Critics may say the world's largest democracy is not doing enough to reduce government spending, but Prime Minister Narendra Modi's administration is actually taking careful steps toward meaningful change.
 
Fears about adverse consequences of rising immigration have not materialised
Joel Suss / British Politics and Policy at LSE
According to polling by Ipsos-MORI, immigration has topped the economy to become the most important issue for British people. Empirical research on the labour market effects, however, finds little overall adverse impact of immigration. Jonathan Wadsworth examines the evidence. Immigration is a big issue. Twenty years of rising immigration mean ...
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Related: Easier said than done
C.R. / Free Exchange
Replacing the parts of the state with the voluntary sector takes much longer than many policy makers think
Related: Budget 2015: Why George Osborne must support the 'UK Mittelstand'
Szu Ping Chan / Telegraph
Budget 2015: Confederation of British Industry calls on the Chancellor to make investment tax breaks permanent and extend a lifeline to the North Sea oil industry
Related: London's West End gives £51bn boost to UK economy
Anna White / Telegraph
Record number of international brands, including the fashion label Victoria Beckham, open flagship stores in the capital's shopping district
Related: Was it all just banker bluster? 2014 proves to be worst year for British M&A since 1987
Ashley Armstrong / Telegraph
Office figures reveal that the number of UK takeovers have plunged 97pc since the peak in 2007 despite repeated City chatter that dealmaking was back on the agenda
 
Warren Warns Fed to Curb Its Emergency-Lending Powers Further
Kate Davidson / WSJ Economics
Sen. Elizabeth Warren on Tuesday urged the Federal Reserve to strengthen a rule curbing its emergency lending powers.
Related: Yellen, Improving the Oversight of Large Financial Institutions
Federal Reserve Board of Governors
Speech at the Citizens Budget Commission, New York, New York
Related: Treasury Arm Questions Fed 'Stress Tests'
Ryan Tracy / MoneyBeat
Two days before the Federal Reserve releases the first round of its 2015 "stress tests" another government agency is questioning the way the annual exercises are run.
Related: What Happened to the Great American Boom?
CEPR
With a string of strong jobs reports (the most recent coming with good hourly wage growth) the business section has been filled with reports of America once again being a booming economy, which contrasted with weak growth elsewhere in the world. With a bit more data, it's not clear that ...
 
Greek myths and legends
Frances Coppola / Coppola Comment
Ricardo Hausman argues that Greek spending was "out of control" during the years prior to the Eurozone crisis - which as far as Greece is concerned actually started in 2009 with its first debt crisis, not in 2012 when the whole bloc nearly collapsed. He says:"Greece piled up an enormous ...
 
Causing the Great Compression
Evan Soltas / Evan Soltas blog
This blog post mostly comes from some longer stuff I'm working on, but I think it's interesting and blog-worthy, so here it goes. The greatest decline in income inequality in the history of the United States happened between 1930 and 1950. The nation went from Great Gatsby to Ozzie and ...
 
Get Ready for Another Real Estate Bubble
Andrew / Fiscal Times
By Marine Cole,The Fiscal TimesMarch 3, 2015 Real estate prices increased again in January, with several states reaching new historic highs, leading experts to wonder whether another real estate bubble might be brewing. Nationwide, home prices rose by 5.7 percent in January compared to a year ago, according to data ...
 
PPPs may offer return to the golden days of China's property market
South China Morning Post
Academic Antonio Estache once noted that all developing countries flirted with the idea of public-private partnerships.
Related: Chinese defense spending slows but still tops GDP growth rate
Japan Times
China's central government will increase defense spending at a slower pace than last year as President Xi Jinping overhauls the military and seeks to stamp out the corruption that hinders the country's combat readiness. The defense budget will rise about 10 percent this year, in line with the increase in ...
Related: Fears of an economic slowdown must not stop China tackling overcapacity
South China Morning Post
Overcapacity, along with high local government debt and the property bubble, have been named as the three biggest risks in the Chinese economy today.
 
Argentina's haircut as an outlier
Sebastian Edwards / VoxEU
There were 24 sovereign defaults and debt restructurings between 1997 and 2013. Using data on 180 debt restructurings - for both sovereign bonds and sovereign syndicated bank loans - this column argues that the roughly 75% 'haircut' Argentina imposed on its creditors in 2005 was an outlier. Greece's 'haircut' of ...
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Denmark Can't Print Money Fast Enough
Mark Gilbert / Bloomberg Views
Denmark is unleashing unprecedented amounts of ammunition in its battle to prevent the krone from appreciating. It still might not be enough to win the currency wars.
Related: Denmark might see a stable policy rate for the next 12 months - Danske
FXStreet / FX Street
FXStreet (Barcelona) - Signe Roed-Frederiksen, Senior Analyst at Danske Bank, assesses Denmark's FX reserves data to explain that the Danmarks Nationalbank might keep EUR/DKK in the 7.4440-7.4700 in 1m-12m and refrain from any additional changes in policy rates.Key Nationalbank (DN) published its FX reserves yesterday, which showed interventions of DKK168.7bn ...
 
Ambitious recovery plans for war-torn Ukraine
Roland Gribben / Telegraph
However, there is mixed opinion from British and European officals about the size of the challenge
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Related: Strategists Says Ukraine Hike Shows 'Desperation'
Josie Cox / MoneyBeat
How much worse can things get for Ukraine's financial situation? Well Tuesday's move might help you get the picture.
 
Australia, Where One Central Bank Won't Do
William Pesek / Bloomberg Views
Monetary policy can't fix the country's two-speed economy.
Related: RBA: Australia Unemployment Likely to Rise
WSJ
Australia's unemployment has further to rise as economic growth is below levels needed to drive the jobless rate lower, said John Edwards, a member of the Reserve Bank of Australia's interest-rate setting board.
Related: Consumer spending gives boost to Australian economy
South China Morning Post
Australia's economy grew moderately last quarter as a strong trade performance and the largest rise in consumer spending in almost three years helped offset softness elsewhere.
Related: Will Australia's Next PM Pivot Towards China?
Clairmont / Francis Fukuyama
A likely successor to the unpopular Tony Abbott might shift away from the Anglosphere and towards China.
 
Mankiw on dynamic scoring
John Cochrane
Greg Mankiw has a nice op-ed on dynamic scoringThe issue: When the congressional budget office "scores" legislation, figuring out how much it will raise or lower tax revenue and spending, it has been using "static" scoring. For example, it assumes that a tax cut has no effect on GDP, even ...
Related: Dynamic scoring and budget forecasting
Bruegel
What's at stake: In January, House Republicans formally adopted a budgeting rule known as "dynamic scoring", which aims to account for the macroeconomic effects of major legislations. While the move from static to dynamic scoring makes economic sense, some worry that it will invite politicized scorekeeping. Source: Econbrowser Gregory Mankiw ...
 
Brazil's interest rates: no time for wavering
Jonathan Wheatley / Beyond BRICs
As Brazil's monetary policy committee sits down in Brasília the consensus view is that it will attempt to regain some credibility in the fight against inflation and raise its policy interest rate by 50 basis points for a third consecutive time. That would bring its target overnight rate, the Selic, ...
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Impotent Western Sanctions Fail To Disrupt Russian Energy Exports
Andrew Topf / Oil Price
Energy exports from Russia, in the form of coal, oil, natural gas and uranium, continue to flow unimpeded, despite Western efforts to damage the Russian economy for interfering in Ukraine. In some ways, the sanctions have had the desired effect. But in others, notably the energy trade, they have failed, ...
 
US running out of room to store oil; price collapse next?
Associated Press
NEW YORK (AP) - The U.S. has so much crude that it is running out of places to put it, and that could drive oil and gasoline prices even lower in the coming months.
 
No Hiding From Sustainable Development
Jeffrey D. Sachs / Project Syndicate
At the Brazilian launch of the UN Sustainable Development Solutions Network last year, many complained that São Paulo was suffering from a mega-drought that the country's politicians were keeping quiet. This is a reality around the world: too many politicians ignore a growing environmental crisis, placing the entire world in ...
 
Is Japan Zimbabwe?
Axel Merk / Value Walk
Is Japan Zimbabwe? by Axel Merk, Merk Investments Is Japan Zimbabwe? How preposterous: Japan is an advanced economy that cannot possibly suffer the same fate as Zimbabwe. Right? Or could Japan get hyperinflation? Below I explain why Japan, and with it investors' portfolios, might be at risk. The other day, ...
Related: How will Japan's new agriculture minister influence the TPP negotiations?
Aurelia George Mulgan / East Asia Forum
Author: Aurelia George Mulgan, UNSW, Canberra Japan's new Minister of Agriculture, Forestry and Fisheries (MAFF) Yoshimasa Hayashi, who previously served in the position in 2012-14, was a logical choice to take over from his disgraced predecessor Koya Nishikawa. He arrived at the Prime Minister's Office (Kantei) only five minutes after ...
 
Recessions and the making of career criminals
Brian Bell ... / VoxEU
Recessions can lead to an increase in youth unemployment, which could later negatively affect labour market outcomes. This column explores the effect of recessions on criminal activity. The findings indicate a substantial effect on initiating and forming youth careers. There is initially strong and eventually long-lasting detrimental effect of entering ...
 
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Recessions and the making of career criminals
VoxEU
Argentina's haircut as an outlier
VoxEU
RBI rate cut: 6 ways in which it will impact you
Times of India
Fears about adverse consequences of rising immigration have not materialised
British Politics and Policy at LSE
Ambitious recovery plans for war-torn Ukraine
Telegraph
Mankiw on dynamic scoring
John Cochrane
Denmark Can't Print Money Fast Enough
Bloomberg Views
Is Japan Zimbabwe?
Value Walk
Get Ready for Another Real Estate Bubble
Fiscal Times
Australia, Where One Central Bank Won't Do
Bloomberg Views
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Link: Centre for Macroeconomics
Link: Economic and Social Research Council
 
Last Updated: 12:36 GMT     Wednesday, 4 Mar. 2015 Archive About FAQ Home