Macroeconomics - Daily News Briefing
Commission warns about centrifugal forces in euro area
Almunia wants to widen the finance ministers’ policy agenda beyond fiscal coordination; Europe is suffering from severe supply shortages of Russian gas; the euro tumbles as market expect interest rates to fall much faster; Germany’s plan to introduce a €100bn fund to help industrial companies through the crisis; the oil price, meanwhile, is back above $50bp.
Two transatlantic policy lessons for crisis management
By: Wolfgang Münchau
This crisis holds two transatlantic lessons. The first, from Sweden, is that governments should recapitalise some, but not all, failing banks. The second is that you need to have a policy in place, and not rely on ad-hoc rescues. This is the euro area's specific problem.
Debunking the Paulson plan
By: Wolfgang Munchau
The Paulson plan raises more questions than it provides answers. This is not just about whether it works, but about its long-term economic effects, the impact on growth, and the future solvency of the US.
European growth : what's to be done
By: Jean Pisani Ferry, Bruegel
Some proposals on how to kick-start the economy.
Two scenarios for the financial crisis
By: Wolfgang Munchau
There are two ways this crisis can development. The financial system will experience a systemic hit, or inflation might rebound. There are circumstances where both can happen.











