The European Crisis – ‘Financial Poker’ Games!

Reviewing the borrowing costs of European nations, a visiting intelligent alien may conclude that the European economic crisis is over and rehabilitation complete. 10-year government bond rates for Spain, Portugal, Ireland and Greece are 2.20%, 3.12%, 1.67% and 6.15% respectively. Equivalent rates for Germany, France and Italy are 0.97%, 1.31% and 2.39%. Comparable rates for […]

The Italian Runaway Train

There has been lot’s of debate in the press and in academic circles over the last week or so about whether Italy’s latest contraction constitutes a triple dip recession or simply a continuation of what’s been going on over many many years. This is an interesting theoretical nicety, but in fact what is happening in […]

Great Graphic: Disinflation or Deflation in Europe?

This Great Graphic appeared was posted by Alen Mattich at the Wall Street Journal.    The red bar shows the average CPI in the 2000-08 period.  The blue bar shows the latest inflation. That was before today’s reports.  These include France, where the year-over-year rate in June slipped to 0.6% from 0.8% and the Netherlands, where the year-over-year rate ticked […]

What to Do About the ‘Crazy Euro?’

From today’s FT: ECB under pressure to tackle ‘crazy’ euro Pressure is mounting on the European Central Bank to take action against a persistently strong euro with a leading industrialist calling on Frankfurt to tackle the “crazy” strength of the currency…Fabrice Brégier, chief executive of Airbus’s passenger jet business, said the ECB should intervene to push […]