Macroeconomics - Daily News Briefing
The bloodbath continues
21.11.2008
Equity continue to slump, risk aversion reaches new extreme hights, and oil falls below $50; high unemployment claims and downbeat statements by the auto companies spook markets; the Fed has quietely shifted away from targeting the Fed’s fund rate to a policy of quantative easing; Socialists face run-off for the leadership between Royal and Aubry; Iceland, meanwhile, secure an IMF rescue package, while Turkey is still playing hard to get.
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Why interest rates will fall to 2% or below by next summer
13.11.2008
By: Aurelio Maccario
The ECB's November rate cut will be remembered as a missed opportunity just as the rate hike in July represented a monetary policy mistake.
Forget about monetary policy
11.11.2008
By: Wolfgang Münchau
Interest rate cuts may be desirable, but they are ineffective in dealing with the current crisis. The only effective instrument to prevent to sustained economic downturn is fiscal policy.
Why a stimulus package must be part of any effective rescue plan
20.10.2008
By: Wolfgang Münchau
This crisis is not over by a long shot. Numerous feed-back loops between the financial system and the real economy will ensure that this crisis will continue for quite some time. In particular, these feedback loops also suggest that the optimal policy response consists of simultaneous financial and economic stabilisation.
No, this is not going to work
14.10.2008
By: Wolfgang Münchau
I respectfully disagree with the financial markets. These plans, in the way they have been drafted, raise serious issues for long term financial and monetary stability.
06.10.2008 Can the IMF Save the World?
23.09.2008 Debunking the Paulson plan
11.09.2008 European growth : what's to be done
07.09.2008 Two scenarios for the financial crisis
22.07.2008 How to deal with Spain and Ireland?
21.07.2008 With friends like these, who needs enemies
Eurointelligence Briefing Notes
Economic reforms in the euro area: Is there a common agenda? by Xavier Debrun and Jean Pisani-Ferry, Bruegel
Despite the recent growth revival, the state of the euro area economy remains vexingly disappointing. What is taking place is too little, too late and the very fact that output growth only started to pick up in the fourth year of the global recovery suggests that something must be wrong. Against this background, the overriding priority remains to design and implement policy packages aiming at: Increasing potential output through higher employment, higher labour participation, and higher productivity; Ensuring that actual output does not lag behind gains in potential output.