Tag Archives: Eurozone

Options after the Greek vote: choosing the finger to bite

6 Jul

Greek voters may have though that they were voting on an immediate ending of the austerity. But that never was on offer, and difficult choices are just beginning with the vote. […]

Employment booms and busts, in a single chart

9 Sep

Employment Booms and busts, in a single chart.

 

Picture_followup_final

Source: BLS, Eurostat, own calculations

With some surprises:

  • USA and Eurozone overall labor market performances are not that different – so far. You would not have guessed, France is actually looking better on this chart than US as a whole. Italy is also better than what we would have guessed
  • Nevada and Spain both had property booms, but the former dealt with the bust better (see previous blog-post).
  • North Dakota and Texas employment have been boosted by the energy boom recently
  • Portugal missed out on the pre-crisis boom, but still managed to participate in the bust, hinting at some serious structural issues

Europe’s Great Depression: a tale of (at least) two economies

5 Sep

The European periphery is replaying the Great Depression in slow motion. This means that eventually the Euro may fall apart, despite the recent loosening by the ECB. […]

What happens in Vegas does not always stay in Vegas

5 Apr

unempl EU USA.jpg

The Eurozone will need a better functioning labor market to keep the monetary union

[…]

From BC to AD – a new financial era?

29 Mar

fractional-reserve-banking-cartoon[1].jpg

From Before Cyprus to After Dijsselbloem? The Eurogroup leader whose name starts with a D showed how to become a swearword from obscurity in a single day. But was he actually onto something important? A modest proposal.

[…]

The lost lender for the offshore resort

22 Mar

BFuPtNvCQAAqcKZ[1].png

Cypriot banks will not fully reopen any time soon. Not even next Tuesday. Capital controls are likely, and potentially not just in Cyprus. The simple morale of the story is that never ever keep money in a banking system/country which is broke….

[…]

Eurozone crisis, Season 3, episode 4

12 Jun

“Banking union” is a backdoor to fiscal union. That is why it will not come any time soon. The Eurozone crisis is potentially worse than the Great Depression for peripheral countries (including Spain and Italy). Policymakers still underestimate the risks, to put it mildly. 

[…]