Reader Swedish Lex points out an important implication of a recent VoxEU post on the Nordic economic model and how it fared in the crisis: The Nordic countries – Denmark, Finland, Iceland, Norway and Sweden – are champions of free trade and open markets… The Nordics have all had different monetary regimes since the euro. […]
Read more...On the one hand, as we noted in an earlier post, EU president Herman Van Rompuy has made no bones about his view that the EU needs to have more clout in economic affairs. Per the Telegraph: Herman Van Rompuy, the EU’s new president, has submitted a text calling for the creation of an “economic […]
Read more...Equities and commodities markets rallied on the belief that Greece would be rescued, and that notion is increasingly looking accurate. The Telegraph provides an update (hat tip Swedish Lex): Wolfgang Schäuble, Germany’s finance minister, has asked officials to prepare a plan in time for a summit of EU leaders on Thursday, according to reports in […]
Read more...Two readers, Don B and Marshall Auerback, pointed to a Ambrose Evans-Pritchard story at the Telegraph which argues the the sovereign debt perturbations have the potential to have ramifications as serious as the subprime/Alt-A crisis. Now Evans-Pritchard has a tendency to the apocalyptic, but he also made some astute calls in 2007 and 2008 (as […]
Read more...After the months of buoyant markets, a return to crisis-type headlines seems troublingly familiar, even though the perturbations of the last day or so are a pale shadow of the worst months of the crisis. And some are making the bull case. For instance, a headline at Clusterstock trumpetss, “Yesterday’s Bloodshed Sent The VIX Soaring […]
Read more...By Joshua Rosner, a managing director of an independent financial services research firm who writes for New Deal 2.0 In Geithner’s AIG testimony before the House Oversight Committee, the Secretary again tried to sell the notion that ‘if we didn’t act then, millions more would have lost their jobs and thousands of factories would have […]
Read more...And after those nice Europeans gave Obama that peace prize! (well, the Nobel foundation provides the funding, Norwegians make the pick, dunno how EU members felt). From the Financial Times: President Barack Obama will not attend a European Union-US summit to have been held in Spain in May, dealing a further blow to the EU’s […]
Read more...Ambrose Evans-Pritchard is nothing if not decisive in his views, and has a undisguised fondness for the bearish perspective. But he was correct on the 2008 inflation/commodities headfake, saying repeatedly that deflationary forces would prevail when that was decidedly a minority view. He is also a Euro-skeptic, and I’m less comfortable with that position. The […]
Read more...By Robert Johnson, former chief economist of the Senate Banking Committee and Senior Economist of the Senate Budget Committee who writes at New Deal 2.0. Since the early 1980s, rises in the living standard of middle class United States citizens have not kept up with the gains in labor productivity. Wages in the middle class […]
Read more...What is truly remarkable about two comments in the last two days in the august Financial Times, is that they both say protectionism against China is likely. One actually urges it, the other pretty much says it’s a-comin’ unless China mends its ways. And both pieces were written by reputable economists, the last people you’d […]
Read more...One of the motherhood and apple pie items in econ-land is that the world needs global rebalancing, which is code for China has to stop being a mercantilist and currency manipulator, and the US has to quit borrowing a ton and overconsuming (or underproducing, which is another way to frame the same problem). But once […]
Read more...Normally I relegate items that I deem important, but to which I have comparatively little to add, to Links and label as “Today’s Must Read.” Even thought this offering falls into that general category, it is far and away the most important “Must Read” I can recall coming across, and so I am highlighting it […]
Read more...Paul Krugman has a good op-ed tonight on how Germany has fared versus the US in the global financial crisis. Recall that there was much hectoring of Germany early on, for its failure to enact stimulus programs. German readers were puzzled, since Germany has a lot of social safety nets that serve as automatic counter-cyclical […]
Read more...By Richard Alford, a former economist at the New York Fed. Since then, he has worked in the financial industry as a trading floor economist and strategist on both the sell side and the buy side. The G-20 statement contained seven principles to guide policy during the balance of the crisis period. However, the agreed […]
Read more...By George Washington of Washington’s Blog . Daniel Gross points out that part of the reason that the American stock markets are going up even though unemployment is rising and the real economy suffering is because multinational corporations headquartered in the U.S. are experiencing strong sales abroad: Here’s a puzzle: The stock markets are doing […]
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