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Cyprus -- The Nightmare Scenario

Laurence J. Kotlikoff | Posted 05.24.2013 | World
Laurence J. Kotlikoff

The Cypriot banks did what all banks do. They gambled. They borrowed money by taking in deposits as well as selling bonds, promised to repay, and then invested in assets they were sure would pay off. These assets included lots and lots of Greek government bonds.

Liquidity vs. Stupidity: Two Early Lessons From Cyprus

Jared Bernstein | Posted 05.22.2013 | Business
Jared Bernstein

Didn't someone around the table in Brussels raise their hand and say, "Hey, wait a sec... do we really want to levy this tax on a banking system that's already teetering?"

Be Bullish! Bernanke Has Spoken!

Michael Farr | Posted 03.22.2013 | Business
Michael Farr

On the heel of Cypriot bank-deposit delirium, we suspect that the U.S. central bankers had more than enough concern to hold firm to the seemingly limitless flow of monetary easing.

Can Cyprus's Sacrifice Save the Eurozone?

Justine Frangouli-Argyris | Posted 05.21.2013 | World
Justine Frangouli-Argyris

Will the government opt to raid some state pension or insurance funds that have already been contributing their share by buying up large sums of national bonds? Will the Europeans back down and ultimately agree to some alternative bailout deal that leaves savings untouched?

Cyprus To Keep Banks Closed Until Next Week At The Earliest

Reuters | Posted 05.20.2013 | Business

NICOSIA/MOSCOW (Reuters) - Cyprus extended a bank lockdown to next week and considered nationalizing pension funds on Wednesday, scrambling to avert a...

Spread: A Catholic Sin

Massimo Franco | Posted 05.19.2013 | Books
Massimo Franco

It might be hard to grasp if you live on the Mediterranean shores of Europe, but the Northern countries of the continent consider the southern countries' debts and high levels of spread Catholic sins.

What You Should Know About the Cyprus Controversy

Mohamed A. El-Erian | Posted 05.17.2013 | World
Mohamed A. El-Erian

On Saturday, European officials stunned Cypriots (and many others) by announcing a rescue package for their country that involves a levy on all bank deposits. The news is spreading far and wide, causing quite a bit of controversy in the process.

Visions of Europe: Unity & Division

Ruth Starkman | Posted 05.11.2013 | World
Ruth Starkman

What are the territorial and cultural boundaries of Europe? How do Europe's many competing theological, cultural, and political visions coexist today? What future will they bring?

Europe: Towards a Governance Union?

Michael G. Jacobides | Posted 04.27.2013 | World
Michael G. Jacobides

The current crisis is an opportunity in disguise. If the European leaders seize the chance, they can improve competitiveness and thereby living standards in the south and east, while increasing the legitimacy of the EU at the same time.

Legends of the Greek Fall

Dimitri B. Papadimitriou | Posted 02.20.2013 | World
Dimitri B. Papadimitriou

The private sector became a net borrower against the rest of the world. Sound familiar? These weren't the only issues underlying the Greek crisis, of course. To tick a few more linked fundamentals off the list: A problematic effective exchange rate was propelling a deterioration in the trade balance.

Will Greece Survive?

Marietta Giannakou | Posted 04.21.2013 | World
Marietta Giannakou

Is modern Greece going to survive out of the storm of the ongoing crisis? Is Europe about to change path from the achievements of post-war political cooperation and economic integration to the unchartered waters of national egoisms and self-minded interests?

Good News For European Banks

Reuters | Posted 04.20.2013 | Business

* German banks' use of ECB funds drops to 49.5 bln end-Jan * Banks from euro zone core pay back 3-yr loans early * Itali...

Europe: Toward a More Perfect Union

Nemat Shafik | Posted 04.17.2013 | Business
Nemat Shafik

During the years that followed the euro's introduction, financial integration proceeded rapidly and markets and governments hailed it as a sign of success. But in fact, a lasting convergence in productivity did not materialize. So where do we stand, and what more is needed?

Is There Hope for a Recovery of the Greek Economy?

Evangelos A. Calamitsis | Posted 04.10.2013 | World
Evangelos A. Calamitsis

After five years of a deepening economic recession and growing unemployment in Greece, one may wonder whether there is now hope ("elpida") for an end to the Greek fiscal and debt crisis, the restoration of the country's competitiveness, and a sustainable recovery of growth and jobs.

Too Soon for Optimism on Europe's Financial Crisis

Edward P. Joseph | Posted 04.08.2013 | World
Edward P. Joseph

Little has been done to correct the fundamental flaws that spawned Europe's ill-fated common currency, the Euro. Premature optimism relieves Europe's ever cautious policy makers from taking the bold steps needed to truly stem the crisis.

Reading Between the Lines: Why Eurozone Improvement Is Being Ignored

Gemma Godfrey | Posted 04.08.2013 | Business
Gemma Godfrey

Rising demand for German goods, an improving business climate and stability in Spanish housing should have given markets cause for celebration. However, after the substantial rally we've seen, and the headwinds yet to be tackled within the region, caution has crept back into markets.

Why a Reinvented Transatlantic Economic Relationship Is Needed to Cope With the Economic Crisis

Angelo Federico Arcelli | Posted 03.31.2013 | World
Angelo Federico Arcelli

Whilst in Europe there is little understanding of the governance issues that prevent the U.S. from arriving at a quick solution of its main economic issues, in the U.S. there lingers an air of doubt about the determination and decisions of the Eurozone leaders.

Derek Jeter Should Stick to Baseball: Challenges at Davos

Ian Bremmer | Posted 03.28.2013 | Business
Ian Bremmer

2013-01-23-FinalDavosDiariesbanner.jpgThere have been a lot of publicity stunts to bring attention to climate change. But surely the only thing less effective than global climate summits is having Derek Jeter tackle the issue.

Morning in Davos?

Ian Bremmer | Posted 03.26.2013 | Business
Ian Bremmer

2013-01-23-FinalDavosDiariesbanner.jpgIn Davos, we see firsthand that the sunny and the snowy can coexist. The same holds true for bullish and bearish signals in the global economy this year.

EIU Global Forecast: On Course for a Mid-year Recovery

Kevin Dunning | Posted 03.26.2013 | Business
Kevin Dunning

Congress was able to avoid the "fiscal cliff" -- a sharp fiscal consolidation at the start of 2013, which threatened to push the economy back into recession. Nonetheless, taxes are set to rise on workers (a temporary payroll tax cut was not extended) and high incomes will be taxed more heavily.

Davos' Dark Knight Unmasked

Ian Bremmer | Posted 03.25.2013 | Business
Ian Bremmer

2013-01-23-FinalDavosDiariesbanner.jpg David Cameron's much-anticipated speech, in which he called for a referendum on Britain's EU membership by 2017, instantly made the British PM the Dark Knight of Davos. And wouldn't you know it: he is slated as a keynote speaker here later in the week.

Greece Shows Us How Poverty Degrades the Environment

Iain Murray | Posted 03.25.2013 | World
Iain Murray

Greece is regressing. As it becomes poorer, its environment suffers more. If you ever needed an illustration of why affordable energy is important for the environment, Greece provides it.

What They Aren't Telling Us About European Unity

Gemma Godfrey | Posted 03.23.2013 | World
Gemma Godfrey

Huge strides forward in Europe and subsequent market rallies have raised hopes for the region. So is the road to recovery now clear or are significant risks still present? Crucially, what are the key areas of conflict we should be watching closely and which are 'red herrings'?

The Re-emergence of Europe: Rebuilding Europe's Global Brand

Prof. Klaus Schwab | Posted 03.23.2013 | Business
Prof. Klaus Schwab

At a time when Europe seems divided, lacking vision and, according to some pundits, on the point of collapse, how can we reignite that shared vision and enthusiasm its founders had?

The Re-emergence of Europe: Tackling Europe's Youth Unemployment

Prof. Klaus Schwab | Posted 03.22.2013 | Business
Prof. Klaus Schwab

If we want to create more jobs, Europe has to invest heavily in the growth sectors of the future, be they genetics, nanotechnology or digitalization. This can only be done by strengthening research and innovation throughout the EU.