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Saturday, May 24

24th May - W/E: Best of the Week

Here are the ”best” from my posts of the ending week. Last week’s edition here.

Previously on MoreLiver’s:

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Positive PMIs for May, ECB’s stance unchangedTradingFloor
After the Asian positive surprises, the European purchasing manager index remained elevated as well. Germany's service sector boom and France's return to contraction were the main news, opening up a threat of political trouble while keeping the ECB's stance largely unchanged.

Sarko drops a bombOpen Europe
At least half of EU powers should return to member states

Europe's Soaring Revulsion Against "Europe" In One ChartZH
At this rate one more election and the Eurosceptics will be the single largest political block in a "United" Europe.

‘It was the point where the eurozone could have exploded’FT
In the first part of a series on the year that forever changed Europe, Peter Spiegel recreates three bitter days in November when the eurozone crisis hit its lowest moment

Inside Europe’s Plan ZFT
In the second instalment of a series on the year that changed Europe, Peter Spiegel reveals how a secret strategy was developed to contain the firestorm from a Greek exit.

‘If the euro falls, Europe falls’FT
In the third part of a series, Peter Spiegel examines Angela Merkel’s deft political moves that led to the end of the crisis

Charting Europe’s JapanificationFT
Credit Suisse: The lessons from Japan suggest that policy action in coming months may be critical for a recovery in inflation.

ECB's Mersch says chances for June action grown substantiallyReuters
There were increasing signs on Monday that the European Central Bank will add more stimulus to the euro zone economy at its June policy meeting as inflation remains stuck at very low levels.

Where could ECB interest rates go?Money Matters

Dudley Revisits Exit StrategyTim Duy’s Fed Watch
Dudley reinforces expectations that the low rate environment will persist long into the future. The data flow is not providing reason to think otherwise at this point; we would need to see higher inflation numbers coupled with real reason to believe labor market slack was rapidly evaporating, probably in the form of stronger wage growth. It remains interesting that the Fed does not view their own outlook as reason to accelerate the pace of activity. They seem relatively content to accept what they themselves acknowledge is an ongoing disappointment. 

BOJ offers brighter view on economy, dashes near-term policy easing hopesReuters
The Bank of Japan kept policy steady on Wednesday and painted a slightly more optimistic view of the economy, dropping a reference to the country being in deflation and further dashing expectations it will offer more stimulus any time soon.

Special: Timothy GeithnerMoreLiver’s
Onko euro Suomelle siunaus vai kirous?HS / Perässähiihtäjä

Populismin nousu on euroeliitin oma vikaJan Hurri / TalSa
Ensi viikon eurovaaleissa tyytymättömän kansan kiukkuiset äänet kasvattavat protestipuolueiden kannatusta, jos kannatuskyselyt pitävät kutinsa. Vanhat valtapuolueet pysyvät vallassa mutta entistä heikompina. Valtaeliitti pelkää ja paheksuu populismin nousua – vaikka se on euroeliitin oma vika.