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An End To Austerity?

Harlan Green | Posted 11.09.2015 | Business
Harlan Green

The result of such austerity policies has been lost output and overall wealth that several economists say could last for years--and may even be permanent--hurting both jobs and economic output.

Another Shot of Steroids From the Central Bank Doctors

Sara Zervos | Posted 10.27.2015 | Business
Sara Zervos

Back in 2008, the global economy was severely injured, and policymakers have been struggling to provide the right medicine to heal it.

Draghi Fever Thursday - Are You Fed Up with the BS Yet?

Phil Davis | Posted 10.22.2015 | Business
Phil Davis

I've got Draghi fever, she's got Draghi fever We've got Draghi fever, we're in debt She's gone Dollar crazy, I&...

China's Miracle Economy Goes from Illusion to Nightmare?

Ambassador Muhamed Sacirbey | Posted 08.18.2015 | Business
Ambassador Muhamed Sacirbey

If there was one virtue that China projected, it was an economy that could handle like a BMW, and go from 0 to 7.5 percent growth in 3 months.

Greek Voters Present Obstacle to Unelected Authorities' Efforts to Transform Europe

Mark Weisbrot | Posted 07.10.2015 | Politics
Mark Weisbrot

By voting "No" with a large margin (61-39 percent), Greek voters demonstrated several important things. First, that they were not easily intimidated. Second, that despite a massive propaganda campaign by what the New York Times described as "the oligarch-dominated news organizations," they were not easily fooled.

Zach Carter

Why Obama Is Leaving Greece To Fend For Itself Against Germany | Zach Carter | Posted 07.08.2015 | Politics

WASHINGTON -- The Obama administration is effectively sitting out the contentious talks over the festering economic crisis in Greece, despite increasi...

Greece Has Reached Its Threshold of Pain

Daniel Wagner | Posted 07.06.2015 | World
Daniel Wagner

It should not have come as a surprise that the majority of Greek voters opted not to accept more externally-imposed austerity, by voting "no" in Sunda...

What Will Save the Euro?

Harlan Green | Posted 07.06.2015 | Business
Harlan Green

Now that Greece has voted "no" on the latest proposal by the European Commission, the European Central Bank, and the International Monetary Fund (the so-called "troika"), will Greece stay in the eurozone? If so, Greece may save the euro.

Markets Around the World Drop 2-4% on Greek Worries.

Natalie Pace | Posted 06.30.2015 | Business
Natalie Pace

The announcement that the banks and stock market in Greece would be closed was made by the Greek Prime Minister on Sunday, June 28, 2015. Within 24 hours, markets around the world declined in value. There wasn't any country you could escape to for safety.

The EU, the Grexit, and Market Failure

Daniel Wagner | Posted 06.26.2015 | World
Daniel Wagner

An orderly unwinding of Greece's and Europe's debt is possible. If it could be done in the U.S., when a third of all savings and loans associations failed in the 1980s and 1990s, something similar can be done in Europe.

Act III of the Greek Tragedy

Richard Finger | Posted 06.23.2015 | Politics
Richard Finger

What is about to happen in Greece could be another Sophocles sequel.

Merkel Says Greek Bailout Deal Still Possible If Athens Shows The Will

Reuters | Posted 06.18.2015 | World

By Paul Carrel and Angeliki Koutantou BERLIN/ATHENS, June 18 (Reuters) - German Chancellor Angela Merkel said on Thursday a deal betwe...

Are European Officials Pushing for Regime Change in Greece?

Mark Weisbrot | Posted 06.22.2015 | World
Mark Weisbrot

While the Greek government cannot do anything to replace its negotiating partners with people more to their liking, the European officials on the other side seem to believe they can do exactly that. And it is becoming increasingly clear that this is their current strategy.

Why Europeans Are Trying to Burn Down Their Central Bank

Mark Dawson | Posted 06.13.2015 | World
Mark Dawson

BERLIN -- Great crises often produce enduring images. For the Israeli-Palestinian conflict, this has often been a terrified child cowering behind protective parents; for 9/11 it was brave firemen rushing headlong into collapsing buildings. Last month saw what could become one of the lasting images of Europe's unending crisis: the sight of burning cars and buildings after riots outside the European Central Bank.

Are the European Authorities Destroying the Greek Economy in Order to 'Save' It?

Mark Weisbrot | Posted 06.08.2015 | Politics
Mark Weisbrot

There is a tense standoff right now between the Greek government and the European authorities -- sometimes known as the Troika because it includes the European Commission, the European Central Bank (ECB), and the International Monetary Fund (IMF).

Is the Eurozone Drifting Apart?

Stefan Bielmeier | Posted 05.26.2015 | Business
Stefan Bielmeier

It now falls to Europe's politicians to act resolutely to stop the union drifting apart. Their present approach of endless negotiations and compromise formulas risks losing the last vestige of popular support.

Protesters, Police Clash Near ECB In Frankfurt

Reuters | John O'Donnell and Paul Carrel | Posted 05.17.2015 | World

By John O'Donnell and Frank Siebelt FRANKFURT, March 18 (Reuters) - Anti-capitalist protesters clashed with riot police near the ne...

Why Is a Central Bank Taking the Risks of Quantitative Easing?

Stefan Bielmeier | Posted 05.15.2015 | Money
Stefan Bielmeier

Surging liquidity, more risk on the balance sheets of banks and insurers, sky-high valuations in individual asset classes -- these are some of the already visible consequences of the ECB's policy, and the trend is set to continue.

Next Up, Podemos in Spain: European Officials Will Have to Change Course

Mark Weisbrot | Posted 05.13.2015 | World
Mark Weisbrot

Greece's Syriza party has put its foot down to demand an end to the troika's agenda, and now Spain's Podemos party has risen even more quickly than Syriza to join them. This is what democracy looks like -- even the rigid, unaccountable structure of the eurozone will not be able to stop it from spreading.

IOU 240 Euros, It's My Problem; IOU 240 Billion Euros, It's Your Problem!

Terry Connelly | Posted 04.19.2015 | Business
Terry Connelly

The first thing to know is that nobody should sell or buy a lot of US stocks or bonds because of the unfolding late-inning melodrama between the new g...

Who's Extorting Whom? It's All About Coercion

Mark Weisbrot | Posted 04.19.2015 | World
Mark Weisbrot

The Economist's Feb. 6 cover displayed the Venus de Milo statue pointing a revolver, with the headline "Go ahead, Angela, make my day." In the editors' upside-down world, Greece is threatening Europe, or at least Germany. Really?

ECB Paddles Both Ways in the Rubicon

Stephen G. Cecchetti | Posted 04.11.2015 | Business
Stephen G. Cecchetti

On January 22, the ECB crossed the Rubicon twice -- but in opposite directions. In an effort to combat deflation and years of anemic growth, the central bank announced a sustained program of large-scale asset purchases.

ECB Steps Up Financial Pressure On Greece To Reach Deal

Reuters | Posted 04.06.2015 | World

By John O'Donnell and Jan Strupczewski FRANKFURT/BRUSSELS, Feb 4 (Reuters) - The European Central Bank abruptly canceled its accept...

Swexit: How Switzerlands' Prudent Economic Policies Got It Into Trouble

OpedSpace | Posted 03.30.2015 | Business

On January 15, the Swiss National Bank (SNB) shocked international markets by abandoning the 3-year-old exchange rate floor of 1.20 Swiss Franc (CHF) per Euro (EUR). Put simply, this means that the SNB stopped spending billions of Swiss Francs to buy euro-denominated bonds.

The ECB's Not-So-Sweet 16th

Kermit Schoenholtz | Posted 03.15.2015 | Business
Kermit Schoenholtz

If the ECB is willing to use all its available tools without limit, there is little reason to doubt that it can hit its inflation target of close to 2%. However, making that policy commitment credible remains a great challenge because of the controversy and dissent about acquiring risky government debt.