Macroeconomics - Daily News Briefing
Germany’s wise man call for stimulus
12.11.2008
Council of economic advisers calls for 0.5-1% package of investment spending; forecast of zero growth for 2009; chairman of Merrill Lynch predicts 1930s style depression; $2.1 trillion of European corporate debt wil mature until 2011; Harvard University apparently so brilliant investment managers are warning of a sizeable loss; the number of unsold Spanish property has skyrocketed; Joschka Fischer, meanwhile, accused Barroso of incompetence in his handling of the financial crisis.
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Is Europe Finally Back?
16.04.2008
By: Johnny Munkhammar
Europe has declined economically compared to the United States for three decades, following differences in economic policy. As the US pursued free-market reforms, Europe maintained or expanded the size of government. Following a shift in policies, however, this development might be changing to the opposite. The current dramatic economic slowdown in the US may be temporary, but we are also likely to see a long-term comeback for Europe.
Pessimism about the eurozone is misplaced
15.04.2008
By: Wolfgang Münchau
The euro area is stronger than the forecasts of the IMF believe. The crisis will eventually affect euro area growth, but not so much in 2008. There is also some evidence that the euro area is a touch less dependent on the US than previously.
Central banks must care about asset prices
08.04.2008
By: Wolfgang Münchau
The IMF is right to say that asset price matter for monetary policy. But the IMF is wrong to claim that this would be consistent with inflation targeting.
Why the euro will soon replace the dollar as the world's reserve currency
24.03.2008
By: Wolfgang Münchau
The predominance of the dollar as the global reserve currency is bound to end in any case. The credit crisis will greatly accelerate that process.