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EUROPE
Brussels blog round up – Europp
/ LSE
Juncker negotiations,
Spanish monarchy, and is ‘Merkenzi’ the new ‘Merkozy’?
Lacklustre investment in the Eurozone: Is there
a puzzle? – voxeu.org
Marco Buti, Philipp
Mohl: Investment in the Eurozone is forecast to remain below trend until 2015,
with a particularly large shortfall in the periphery. Low investment reduces
aggregate demand, thus lowering short-term growth, and it also hampers
medium-term growth through its effect on the capital stock. This article
highlights three causes of low Eurozone investment – reduced public investment,
financial fragmentation, and heightened uncertainty – and proposes a series of
remedies.
Euro area external imbalances and the burden of
adjustment – ECB
ECB Working papers by
Filippo di Mauro and Francesco PappadÃ
Exchange rates and trade adjustment: Fat tails
matter – voxeu.org
Filippo di Mauro,
Francesco Pappadà : Trade imbalances in the Eurozone require relative price
adjustments. This column argues that the traditional ‘elasticity’ approach is
lacking when thinking about the adjustment magnitude. Exports adjust when
exporting firms sell more (intensive margin) and new firms start exporting
(extensive margin). The extensive-margin reaction depends upon the fatness of
firm-level productivity distributions. Surplus-country distributions have fatter
tails than deficit countries, suggesting that the price adjustment magnitude
may be larger than traditional calculations suggest.
In The Battle for Europe: How an Elite Hijacked
a Continent and How we Can Take it Back Thomas Fazi argues that EU elites
have seized on the financial crash to push through neoliberal policies,
undermining social cohesion and public services.
The German economy: Clouds ahead – The
Economist
The recent vigour
hides underlying weaknesses. Europe’s
leading economy is facing clouds ahead.
It appears David
Cameron's strategy has backfired. His campaign to derail Jean-Claude Juncker's
appointment as the next EU Commission president is failing and the British
prime minister may soon suffer a loss of face. Angela Merkel is his only
possible savior.
IMF: 'Ward off housing bubble now' – BBC
EUROPEAN
CENTRAL BANK
Here’s One Set of Potential Losers from the
ECB’s Rate Move – WSJ
Will Falling Euro-Zone Yields Push Up the Euro? – WSJ
ECB Officials to Markets: Chill a While and Let
Our Actions Take Effect – WSJ
Wolfgang Munchau: Draghi
is trying a new approach, and if that does not work, he will try another
EUROPEAN
COMMISSION PRESIDENCY
The appointment of the
next leaders of the EU Commission has divided Europe, raising the specter that Britain could leave the bloc. London is an important ally to German Chancellor
Angela Merkel and it is likely she will seek to broker a deal.
Jean-Claude Juncker
vehemently criticized German-imposed austerity measures during the euro crisis.
By doing so, he gained support in a number of countries -- especially those
which would like to see the common currency zone degraded into a debt union.
The perils of Merkelvellianism – The
Economist
Europe looks getting either a rotten president or a
constitutional crisis
UNITED STATES
The Con-Artist Wing of the Democratic Party – VICE
Review and commentary
of Timothy Geithner’s latest book.
June Macro Update: Still Moderate Growth – Fat
Pitch
Americans warming up to credit cards again – Sober
Look
Financial Sector Default Risk Plummets – Bespoke
New York Fed releases 2013 annual report – FED
ASIA