Here are the ”best” from my posts of the ending week. Last week’s
edition here.
EUROPE
Delivering the
Eurozone ‘Consistent Trinity’ – voxeu.org
Marco Buti, Maria Demertzis, João Nogueira Martins: Although progress has
been made on resolving the Eurozone crisis – vulnerable countries have reduced
their current-account deficits and implemented some reforms – more still needs
to be done. This column argues for a ‘consistent trinity’ of policies:
structural reforms within countries, more symmetric macroeconomic adjustment
across countries, and a banking union for the Eurozone.
EUROPEAN CENTRAL BANK
Why
is the ECB hesitating on monetary easing? – Sober Look
Ultimately the ECB could be right and some day, as the banking system is
"restructured", the Eurozone's economy will heal itself. But that was
also the attitude in Japan years ago when the
nation undertook its banking reform. Yet deflation in Japan persisted for years
since then, becoming heavily entrenched in the economy. Is the ECB now willing to take that chance?
Spain, the ECB and the power of talk – Forbes
Frances Coppola: I do not expect the ECB to do any significant easing at
the moment. But that doesn’t mean they won’t continue to talk about it. After all, signalling has worked well
so far.
Draghi
Europe Scenario Points to Lowflation Still Painful – BB
For all the fears of a Japan-style era of deflation, a more likely
threat for Europe is what IMF officials are calling lowflation.
Euro zone inflation
drops to lowest since 2009 – Reuters
ECB
hints at QE, but it is really in trouble – TradingFloor
The ECB left rates unchanged and presented no new measures, but revealed
unanimous support for unconventional easing. That will be easier said than done.
ECB Does Nothing.
Yada, Yada, Yada – Marc to Market
UNITED STATES
5 Reasons Why Janet
Yellen Still Sees Slack in Economy – WSJ
How
Our Big Banks Really Make Their Money – BB
The eight biggest U.S. banks earned more
than $80 billion last year, with much of that coming from government subsidies,
according to a new report from the IMF..
Fed of 1970s Shows
Capacity May Mislead: Cutting Research – BB
The decision of
central banks to focus more on economic slack as a barometer of when inflation
will become a problem could backfire, if history is any guide.
ASIA
China - Government announces mini-stimulus – Danske Bank
Economists React: China’s Mini-Stimulus a Break from the Past – WSJ
China Outlines Measures to Support Growth as Goal Recedes – BB
China outlined a package
of measures including railway spending and tax relief to support the economy
and create jobs after a slowdown endangered Premier Li Keqiang’s target of 7.5
percent growth this year.
OTHER
Sovereign rating
bias, a clanging gauntlet lands – FT
Unicredit: We suggest that credit rating agencies should be stripped of
their regulatory powers and these transferred to an international body. Failing
that, the ratings agencies should be forced to substantially increase
transparency, including publishing a separate breakdown of the objective and
subjective components of ratings, the minutes of the rating committees, and the
voting records.
Why Minsky Matters – BBC
His key idea is simple enough to be a t-shirt slogan: "Stability is
destabilising". While the mainstream view has been that markets tend
towards equilibrium and the role of banks and finance can largely be ignored,
Minsky argued that in the good times the seeds of the next crisis are sown as
the financial sector engages in riskier and riskier lending in pursuit of
profit.
FINNISH
Taloustanssia tulisilla
hiilillä – mikä ihmeen pakko? – Jan
Hurri / TalSa
Talouden
vyötä on pakko kiristää koska sitä on pakko kiristää. Näin väittävät
talouspolitiikan päättäjät, mutta Suomen valtion alijäämiä rahoittavat
suursijoittajat ovat täsmälleen toista mieltä. Valtion rahoitusasema ei sanele
minkäänlaista pakkoa vyönkiristyksiin.
Tämä säästökepponen
pahentaa kestävyysvajetta – Jan
Hurri / TalSa
Valtion
eläkerahaston osittainen purkaminen budjetin tilkkeeksi on kumma
kestävyyskepponen vailla tolkkua: se pienentää valtion tämän ja ensi vuoden
alijäämää mutta pahentaa sitäkin enemmän pitkän ajan kestävyysvajetta.
Tällainen "säästäminen" on hölmömpää kuin hölmöläisten peiton
jatkaminen.
Euroopassa luottamus
piristyy, Suomessa ei
– Roger
Wessman
Navigaattori: Venäjä on valinnut toisin – Nordea
Ruotsin kasvunäkymät povaavat vahvempaa
kruunua * Korkomarkkinat ravistivat Ukraina-efektin pois * Venäjä-riski heiluttaa
raakaöljyn hintaa * Venäjän näkymien heikentyminen painaa edelleen osakkeita *
Kiinan tie kohti kelluvaa valuuttaa * Markkinakorot nousuun Fedin jälkeen *
Kolme näkökulmaa rahoitusriskien hallintaan – johto, käytäntö ja
riskipolitiikka * Euroalueen inflaatiota seurataan EKP:n korkopäätöksen
kannalta tarkkaan
Perussuomalaiset EU-vaaliohjelma – PS
EU:n poliittinen kenttä
muutoksessa – Brysselin
kone / YLE
Haastateltavana
valtio-opin professori Jan Sundström.
Suomi sosialisoidaan – Jo riittää – Pauli
Vahtera / IL