The Economist picks up the same issue as I have in my last two posts: is it possible for individual countries to employ macroprudential regulation to counteract monetary policy nationally? Is it useful if Germany does so? Here are some bits, but do read the whole article: But if Mr Weidmann is minded to take pre-emptive action, he will …
I am very glad to welcome this guest contribution by David Lizoain on how to measure inflation correctly in the Eurozone. It is difficult, and at times dry topic, but I encourage you all to read David’s excellent summary of the issues below. Mario Draghi and the rest of the ECB Governing Council paid us a visit …
The WSJ has an interesting piece about the potential and likely effects of German fiscal stimulus (by Amit Kara, UBS): The euro-zone economy is stagnating, and many argue that Germany is partly to blame. German households and corporations tend to save, and the country runs a large and persistent current-account surplus. That implies a deficit in other …
Yanis Varoufakis has been covering the Euro Crisis for quite some time and wrote a “Modest Proposal” to solve the crisis early on, that he updates regularly. I have been following his writings and also recommended him in my recommended economics blogs list (in German). I fully agree with Yanis, and have written it over and over, …