Macroeconomics - Daily News Briefing

Schäuble proposes European Monetary Fund

08.03.2010

Germany’s finance minister proposes radical Treaty changes to deal with crises similar to Greece; plan includes liquidity support for countries in financial difficulties based on a unanimous vote by finance ministers; insolvency will still be possible; countries would be obliged not to cal the IMF; stability and growth pact rules to be toughened: possible penalties include removal of voting rights or cut-off from cohesion funds; Greeks are very sceptical of these changes; Quentin Peel makes the point that such an arrangement could hardly be set up to help Greece; Juncker proposes European rating agency under the auspices of the ECB; Merkel continues to procrastinate on aid when she met with Papandreou on Friday; unlike Sarkozy, who said he is willing to put up money; Papandreou says he wants to borrow at similar rates than others; Kathimerini says austerity package is likely to prolong the recession; Paul Volcker says euro is likely to survive; Wolfgang Munchau, meanwhile, says euro is very likely to weaken.





The China Syndrome

17.11.2009

By: Satyajit Das

This is the first in a three part series on the Chinese development model, and its sustainability.


It’s Not When to Exit, But Who

13.11.2009

By: Barry Eichengreen

The danger posed by Asia’s financial bubbles is real. But it is important to take the right steps to combat it. This is appropriately a task for emerging market central banks, not for the Fed or the ECB.


The appearance of coordination

06.11.2009

By: Angel Ubide

Global policy co-ordination is important, but we should not hold our breath. The national interest will in most case prevail, which leaves naming and shaming as probably the most potent policy tool.


About to think the unthinkable

04.11.2009

By: Wolfgang Münchau

The time to exit is not now, but it is nearer than you think.


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