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EUROPE
Antonio Fatás: Europe's
fiscal policy doom loop – voxeu
The
damage done by procyclical fiscal policy in the euro area between 2010 and 2014
is likely to be even larger than previous studies have suggested. The column
argues that fiscal policymakers at the time created a 'doom loop', with
unfounded pessimism feeding into policy, and the consequences of those policies
increasing pessimism. This has created hysteresis, permanently reducing GDP.
Jean Pisani-Ferry:
One Club Does Not Fit All in Europe – Project
Syndicate
The
biggest risk for the EU is to remain mired in outdated structures and to
succumb to inertia. If it is to survive in a rapidly changing and increasingly
challenging world, the EU needs a new model of European integration that
abandons the principle of "ever closer union."
ITALY
Italy
Defies Europe, Agrees On 2019 Budget Deficit At 2.4% Of GDP – ZH
Italian
Stocks Fall, Bond Yields Soar Amid Budget Deficit Liquidation Panic – ZH
Editorial:
Italy Puts the European Project at Risk – BB
Mark
Gilbert: Italy Scalds Bond Investors in Replay of Greece – BB
Italy
tests the EU’s tolerance – Pictet
Europe
Warns Of Debt "Explosion", Threatens Savers – ZH
Italy’s
Extraordinary Act of Self-Harm – BB
UNITED STATES
The 2018 Midterms
– Three scenarios
– ABN
AMRO
OTHER
Ray Dalio: Why Do
Debt Crises Come In Cycles? – ZH
Fiscal space,
government spending, and tax rate cyclicality patterns – voxeu
The
upward trajectory of policy interest rates in OECD countries will impose
growing fiscal challenges, testing their fiscal capacity for countercyclical
policy and thus their resilience. This column compares fiscal cyclicality
across countries and identifies measures of fiscal space. The results reveal a
mixed fiscal scenery, where more than half of countries are characterised by
limited fiscal space, and fiscal policy is either procyclical or acyclical.
A rational
backlash against globalisation – voxeu
The
vote for Brexit and the election of protectionist Donald Trump to the US
presidency – two momentous markers of the ongoing pushback against
globalisation – led some to question the rationality of voters. This column
presents a framework that demonstrates how the populist backlash against
globalisation is actually a rational voter response when the economy is strong
and inequality is high. It highlights the fragility of globalisation in a
democratic society that values equality.
REGULARS
EU Open Rundown – RANsquawk
Brussels Edition
Daily
– BB
Eco Day Europe – BB
Italy's
Budget Fracas, Tariffs Hit U.S., India Spirits
FirstFT Daily
Briefing –
FT
WSJ Daily
Economics
– WSJ
Has
the U.S. Economy Already Peaked?
Danske Daily – Danske
Bank
Daily Market Comment – Marc
Chandler
Dollar
Remains Firm While Italy is Punished
Brussels Playbook – Politico
Italy’s
big bet — Friends and frenemies — More Parliament power plays
Five Things You
Need to Know to Start Your Day – BB
US Open – ZH
US
Futures, Global Markets Slide As Italian Chaos Returns
US Open Rundown – RANsquawk
Italian hallituksen budjetin alijäämätavoite oli
odotettua suurempi | Tänään saadaan inflaatiolukuja sekä euroalueelta että
USA:sta | Euro heikentyi uusien Italia-huolien myötä, dollari vahvana