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European Central Bank

Don't Count on the ECB to Stimulate the European Economies

Georges Ugeux | Posted 01.24.2015 | Business
Georges Ugeux

For all the media frenzy, the complacency of economists, the trumpets announcing a new era, Europe does not want to understand the basic situation it is in. Finance cannot bail Europe out. Only a profound transformation of a regime it cannot sustain will rescue it. Will we need Italy to collapse or another major banking crisis to wake Brussels up?

J'aime Paris et l'Europe

Brent Budowsky | Posted 01.16.2015 | World
Brent Budowsky

As many around the world said to Americans in September 2001, we say to the men and women throughout Paris, France and Europe today: You are not alone. Our unity will ultimately triumph, and our cause will ultimately prevail.

Monetary Union Works Because Europe Is Already Integrated

Mario Draghi | Posted 01.09.2015 | World
Mario Draghi

There is a common misconception that the euro area is a monetary union without a political union. But this reflects a deep misunderstanding of what monetary union means. Monetary union is possible only because of the substantial integration already achieved among European Union countries -- and sharing a single currency deepens that integration. If European monetary union has proved more resilient than many thought, it is only because those who doubted it misjudged this political dimension.

Is Another Euro Crisis at Hand?

Ivan Eland | Posted 01.05.2015 | World
Ivan Eland

If you have any spare cash laying around and need of a vacation, Chevy Chase would probably recommend that you go to Europe. The euro currency has dipped to a nine-year low against the dollar. That is good for tourists going to Europe, but is not good for European economic prospects in the long term. Why?

Is Economic Warfare the Theme for 2015?

Ambassador Muhamed Sacirbey | Posted 01.05.2015 | World
Ambassador Muhamed Sacirbey

Is the Russian Ruble becoming financial rubble as consequence of targeting by the U.S. and its allies? The dramatic fall in oil prices and commensurate drop in the Russian currency, is this coincidental to broader global economic trends or an orchestrated assault?

Ben Walsh

Tim Geithner: The 3 Words That Saved The Euro Were Ad-Libbed

HuffingtonPost.com | Ben Walsh | Posted 11.13.2014 | Business

TK TK

The Global Economy Is Flying on One Engine -- But There Is Turbulence Ahead

Nouriel Roubini | Posted 01.03.2015 | World
Nouriel Roubini

If the Republican Party takes full control of the U.S. Congress in the midterm election, policy gridlock is likely to worsen, risking a rerun of the damaging fiscal battles that led last year to a government shutdown and almost to a technical debt default. More broadly, the gridlock will prevent the passage of important structural reforms that the U.S. needs to boost growth.

24 European Banks Fail EBA Stress Test: Is a Major Banking Crisis Looming?

Sheldon Filger | Posted 12.26.2014 | Business
Sheldon Filger

Since the global economy imploded into systemic crisis in 2008, central banks and regulating authorities in major economies throughout North America and Europe have held periodic stress tests, apparently in an effort to reassure the public.

A Revolt Against Austerity?

Robert Kuttner | Posted 12.19.2014 | Politics
Robert Kuttner

There was a bit of good news from Europe last week. Two of the nations that desperately need some respite from austerity essentially told German Chancellor Merkel to stuff it. France, under pressure from Germany and the European Union to meet the E.U.'s straightjacket requirement of deficits of no more than three percent of GDP (whether or not depression looms) informed the E.U. that they will not hit this target until 2017. The government of President Francois Hollande, under fire for failing to ignite a recovery, now plans economic stimulus measures -- and the target be damned. Under E.U. rules, France can be fined up to 0.2 percent of its GDP. The French seem to be saying, 'So sue us!'

More Trade Agreements Won't Fix Austerity

Robert Kuttner | Posted 12.12.2014 | Politics
Robert Kuttner

The U.S. economy is growing slowly and Europe's hardly at all. The stock market lurch last week is a belated acknowledgement that our two economies share a common affliction, and Europe suffers more seriously. The affliction is austerity. And yet the main remedy being promoted by the U.S. government and its European allies is a trade and investment deal known as T-TIP, which stands for the Trans-Atlantic Trade and Investment Partnership. According to the deal's sponsors, T-TIP would help stimulate recovery by removing barriers to trade and promoting regulatory convergence and hence investment. The proposed deal is not popular in the U.S. Congress, which has to approve negotiating authority. The administration, say well-placed sources, hopes to cram through the necessary approval during the lame duck session of Congress after the November 4 election. That still will not assure approval, because the deal is also increasingly unpopular in Europe.

Draghi's Desperation

Milton Ezrati | Posted 11.30.2014 | World
Milton Ezrati

The European Central Bank (ECB) faces a desperate situation. Remarkably low inflation is stealing its ability to ease the euro zone's fiscal-financial strains and, consequently, its ability to buy time for the zone's governments to implement desperately needed budgetary and economic reforms.

Unanswered Questions for a Consequential Autumn

Terry Connelly | Posted 11.26.2014 | Business
Terry Connelly

In the American democracy we have collectively (or by passive default) chosen to have at the moment, to serve and assuage our divergent biases, the question is whether a governing plurality, as Jack Nicholson said, is "as good as it gets."

Europe's Austerity-Fueled Depression Keeps Getting Worse

The Huffington Post | Mark Gongloff | Posted 09.04.2014 | Business

Europe's central bank just slashed interest rates and launched emergency stimulus measures -- but six years too late, and not enough to counter the au...

Are EU Bankers Trying To Increase Unemployment In Greece?

Dimitri B. Papadimitriou | Posted 10.21.2014 | World
Dimitri B. Papadimitriou

An international dialogue should begin now. It might open with an invitation to the Troika: Explain why Greece should not start a jobs guarantee policy today.

Can Regulation Provide Global Financial Stability?

Georges Ugeux | Posted 08.25.2014 | Business
Georges Ugeux

Achieving financial stability will continue to require risk management skills, good governance, personal ethics, and, above all, courage to act to prevent further deterioration of finance.

If 2 Percent Is the New 4 Percent, Where Would the Economy Go From There? Let's Think It Uber!

Terry Connelly | Posted 08.12.2014 | Business
Terry Connelly

Renting a house, snagging a ride on your smartphone, and de-leveraging your balance sheets would truly be a new American way, with tremendous implications for policymakers including the Fed if a geopolitical or natural disaster hit and it was stuck at an already low interest rate.

19th-Century General Teaches 21st-Century Economists and Politicians: Arthur Wellesley and the IMF Programs in Portugal

André Corrêa d'Almeida | Posted 07.15.2014 | World
André Corrêa d'Almeida

Last week, the Prime Minister of Portugal announced the end of the third intervention of the International Monetary Fund in the country since 1978. But the challenges Portugal faces in building a flexible economy will continue.

5 Things You Need to Know to Profit in Europe

Gemma Godfrey | Posted 06.28.2014 | Business
Gemma Godfrey

As an investor, misunderstandings and overreaction can offer some of the best opportunities to profit. Here, five widely held beliefs are challenged and attractive investment strategies revealed.

What Is Draghi Waiting For?

Pablo Zalba | Posted 06.16.2014 | World
Pablo Zalba

Since interest rates are already at record low, all expect the ECB to announce unconventional measures like the American style QE, which could increase inflation and give a small boost to the economy.

International Policy Coordination: The Loch Ness Monster

Olivier Blanchard | Posted 02.15.2014 | Business
Olivier Blanchard

International policy coordination is like the Loch Ness monster: much discussed but rarely seen. Going back over the decades, and even further in history to the period between the Great Wars, coordination efforts have been episodic.

Weidmann at Harvard: The Sovereign-Banking Nexus

Luka Orešković | Posted 02.05.2014 | Business
Luka Orešković

Weidmann's "separatist" view clearly stems from the German concept of highly independent central banking, assuring price stability rather than trying to target other problems and ensure macroeconomic stability.

Playing With Fire

Michael Farr | Posted 02.02.2014 | Business
Michael Farr

As rates begin to rise in anticipation of Fed "tapering," we would expect an eventual reversal as economic indicators begin to deteriorate. In other words, there is a ceiling on the pace of this economic recovery until deleveraging runs its course (which could be a long while).

The Globalization 5 -- How Globalization Changed America in 2013, and What It Might Mean for 2014

Edward Goldberg | Posted 02.02.2014 | Politics
Edward Goldberg

Welcome to the age of Central Bank Power. Since the 2008 crash, the U.S Federal Reserve Bank has become a new type of global hegemon.

The Euro Zone Is In Big Trouble

Reuters | Posted 11.07.2013 | Business

FRANKFURT, Nov 7 (Reuters) - The European Central Bank cut its main interest rate on Thursday to a new record low of 0.25 percent, responding to a sur...

An Economic Policy Agenda for the EU Under the Greek Presidency

Evangelos A. Calamitsis | Posted 01.23.2014 | World
Evangelos A. Calamitsis

In January 2014 Greece will assume the rotating Presidency of the Council of the European Union (EU) for six months, giving it an important opportunity to promote an agenda for growth, jobs, and solidarity for one of the largest economic blocs in the world.