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European Central Bank

Can Regulation Provide Global Financial Stability?

Georges Ugeux | Posted 06.25.2014 | 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.

Trust and Money

Ricardo B. Salinas | Posted 01.23.2014 | Business
Ricardo B. Salinas

Despite some recent apparent signs of improvement, in the past two years we've had very negative economic news from Europe, particularly from countries such as Spain, Ireland, Greece, Cyprus, Italy, and Portugal. High unemployment, failed banks, fiscal insolvency, and a growing distrust of markets are just a few of the difficulties.

Europe's Incomplete One-Year Anniversary

Mohamed A. El-Erian | Posted 09.25.2013 | Business
Mohamed A. El-Erian

I was in the audience exactly a year ago when Mario Draghi, the well-respected president of the European Central Bank (ECB), made his now-famous "whatever it takes" remarks. Twelve months later, this stands out as the boldest and most successful initiative in the history of modern central banking. Yet the durability of the benefits is undermined by Europe's frustratingly slow progress in getting to grips with its growth and employment deficits. In celebrating the one-year anniversary, the West would be well advised to also think in terms of foregone opportunities. And we should constantly remember the millions of unemployed, the alarmingly high joblessness among the young, the struggles that too many face in securing their families wellbeing, and the growing number of retirees that are legitimately worried about their pensions.

Skip Davos, Go to Tel Aviv

Janet Tavakoli | Posted 08.05.2013 | Business
Janet Tavakoli

The IMF threw Greece under the bus. In particular, it ludicrously downplayed the damage its recommended austerity measures would do to the Greek economy, which is in the grips of a prolonged and deep recession.

Beyond the Eurocrisis: Is More Democratic Governance the Solution for Europe?

Luka Orešković | Posted 07.22.2013 | Politics
Luka Orešković

If invested with popular legitimacy, Europe's success will depend on balancing it with long-term focused meritocratic governance and avoiding capture by short-term and particular special interests. A middle Way between West and East is indeed necessary.

Mark Gongloff

ECB Rate Cut Is Too Little, Too Late

HuffingtonPost.com | Mark Gongloff | Posted 05.02.2013 | Business

European policy makers have rushed to the aid of their lifeless economy, cutting interest rates and promising that more help is on the way. Too bad th...

Cyprus Bailout To Hit $30 Billion

AP | JUERGEN BAETZ | Posted 06.11.2013 | Business

BRUSSELS — The cost of bailing out Cyprus has swollen to 23 billion euros ($30 billion), with the crisis-hit country having to take on the lion'...

Crafting the Cyprus Deal: A Road Filled With Blunders

David Catalan | Posted 05.31.2013 | Business
David Catalan

The role of the Troika in bailing out governments and banks is nothing new, but the solutions put forward by EU leaders to improve the Cypriot crisis seem to be founded on little foresight, and without regard for the tragic mistakes of the past few years.

The Crisis Isn't Just in Cyprus

Terry Savage | Posted 05.27.2013 | World
Terry Savage

Could it happen here? It's unlikely that in America you'd see that kind of outright grab on the part of the government, for any reason, (unless you think back to the gold confiscation of the 1930s). And in America, we're very aware of our deposit insurance limitations.

3 Ways Cyprus Is a 'Game Changer' for Europe

Gemma Godfrey | Posted 05.27.2013 | Business
Gemma Godfrey

With the Fed likely to remain accommodative, bullish market sentiment may continue to overshadow concerns elsewhere. However, Cyprus has highlighted that we're far from an end to the crisis.

The Cyprus Deal Signals a Rise in the Far Right in Europe

Daniel Wagner | Posted 05.25.2013 | World
Daniel Wagner

News of the 10-billion-euro bailout for Cyprus should not be cause for celebration. Europeans are rightly insecure about what comes next, as they should be given the precedent that has been set.

Cyprus Reaches Bailout Deal With International Lenders

Reuters | Posted 03.25.2013 | Business

* Deal to shut Laiki bank, transfer insured deposits * Clinched hours before Monday deadline to seal EU bailout * Without deal banks faced colla...

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.

ECB: Cyprus Is Four Days Away From Bankruptcy

AP | MENELAOS HADJICOSTIS and ELENA BECATOROS | Posted 05.21.2013 | Business

NICOSIA, Cyprus — Cypriot politicians moved Thursday to restructure the country's most troubled bank as part of a broader bailout plan that must...

On the Ground in Europe

Mohamed A. El-Erian | Posted 05.20.2013 | Business
Mohamed A. El-Erian

As they scramble to sort out the mess in Cyprus, European officials would be well advised to constantly remind themselves of a reality that I suspect extends across the continent: Despite all the happy talk about smaller deficits and lower sovereign credit spreads, citizens are yet to feel any notable improvement in their actual standard of living and in their prospects. Day in and day out, this situation undermines the population's confidence in the timely responsiveness of their elected representatives, the political system and traditional political parties. The longer this persists, the harder it will be to pivot to the type of policy reforms needed to decisively avoid more years of economic difficulties.