EUROPE
Fritz W. Scharpf : No
Exit from the Euro-Rescuing Trap? – Max Planck Institute
The euro is a
democratic disaster – WaPo
Scharpf describes Europe’s single currency as
a “non-military attempt at imperial unification,” and suggests that there is a
“disturbing continuity of Nazi visions of European unity and the ideas of some
prominent promoters of European integration in postwar Germany.” These are very
strong words for a German political scientist of Scharpf’s stature (he is an
extremely well-known public intellectual).
Peripheral countries: A scorecard after six
years of crisis – Natixis
Production capacity
has decreased by 25% in Spain, by nearly 17% in Greece and Italy and by around 13% in Portugal
Austerity-hit countries try a new approach: cutting taxes
While this political
signal is to be welcomed, the Commission's short-term scope for taking action
is limited in many areas. Firstly, this is the case because established
economic structures in individual member states cannot be altered overnight.
And secondly, decision-making powers in important policy areas largely rest
with national governments.
ECB’s Constancio Sees
Downside Risks to European Recovery – WSJ
The euro zone's tepid
economic recovery is "real" but plenty of risks remain, including the
prospect of slower growth in emerging markets and the possibility of an
escalation of tensions between Russia and Ukraine
This May, European
voters will decide for the first time who becomes the president of the European
Commission. In a SPIEGEL interview, leading candidates Jean-Claude Juncker,
59, and Martin Schulz, 58, discuss their views on tax havens, euro
bonds and the losers in the debt crisis.
Anti-austerity
protest turns violent in Spanish capital – Reuters
Hundreds of thousands of Spaniards rallied in Madrid on Saturday against
poverty and EU-imposed austerit
Parisian smog, homophobia in Spain, and could Ukraine split in two?
UKRAINE / RUSSIA
Germany has said it
wants to take on greater responsibility in foreign policy -- and the Crimea
crisis offers a golden opportunity to do so. Berlin should impose tougher
penalties against Russia, even if it would hurt the German economy.
Moscow Moves to
Destabilize Eastern Ukraine – Spiegel
It's not only in Crimea where Russian President Vladimir Putin is
playing with fire, but also in eastern Ukraine. The majority of the people
in the economically powerful region speak Russian and reject the new government
in Kiev.
There is a reason why
in the past we have referred to Russia simply as Gazpromia. Here is why...
Can Europe survive
without Russian gas? – Bruegel
Replacing 130 bcm of natural gas imports from Russia within a year would
be a significant challenge, but not impossible
UNITED STATES
FEDERAL RESERVE
Bullard: Yellen’s
‘Six Months’ Comment Doesn’t Represent Change in Policy – WSJ
Stocks Slump As
Bullard Doubles Down On Yellen's "Six Month" Fedian Slip – WSJ
Fed Not Seen Boosting
Rates Until 2016 – Goldman Sachs – WSJ
Dissenter
Kocherlakota Says New Guidance Creates More Uncertainty – WSJ
Kocherlakota's
Dissent – Tim
Duy’s Fed Watch
Kocherlakota's dissent
paints the rest of the FOMC as surprisingly hawkish.
Why Kocherlakota
Broke Ranks – WSJ
Suppose the Fed
always aims for 2% inflation – The
Money Illusion
Janet Yellen didn’t
gaffe
– Felix
Salmon / Reuters
The big FOMC-related move in the 10-year bond yield happened immediately
at 2pm, when the statement was released. Yellen’s
“gaffe” caused barely a wobble.
Confused Fed adds to
emerging market muddle – MacroScope
/ Reuters
If investors once
again start to doubt the U.S. central bank’s commitment to allow inflation
to reach 2 percent before it raises rates, there will be a fresh bout of
fund-raising pain for countries like Brazil, India and Indonesia whose current accounts are in deficit.
Janet Yellen's Rookie
Mistake: Speaking Too Clearly – Businessweek
The mistake: being specific when the occasion called for generality.
ASIA
China’s benchmark money-market rate had the biggest five-day jump since
December after the central bank drained funds from the banking system for a
sixth week.
Housing markets: Double
bubble trouble – The
Economist