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Monday, April 15

15th Apr - US Open



Instead of continuously posting the regular links, they are now moved to a permanent page.

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EUROPE
Economic Policy’s Narrative ImperativeProject Syndicate
The eurozone crisis highlights the need for a narrative that explains public policy and generates political support for it. While central bankers can provide such narratives to financial markets, political leaders must provide the messages that encourage long-term investment, electoral support for reform, and hope for the future.

The Eurozone crisis and EU institutional change: A new CEPR Policy Insightvoxeu.org
The Eurozone crisis has produced rapid institutional change: executive powers over national economic policies have been shifted to the EU. This column introduces a new CEPR Policy Insight that analyses the changes and shifts of power among the EU’s institutions. What is clear is that further reforms are needed in order to safely and accountably underpin new executive power.
  
Europe in BriefKrugman / NYT
Tim Duy asks, when can we all admit that the euro is a failure? The answer, of course, is never. Too much history, too many declarations, too much ego is invested in the single currency for those involved ever to admit that maybe they made a mistake

World Economic Outlook (WEO) IMF
‘IMF sounds the alarm for European failure to respond to the crisis’ presseurop

Ackermann Says Allowing Euro to Fail to Be CostlierBB
“Allowing the euro to fail would be more costly than deepening the region’s fiscal and political ties.”

Europe to Face Washington Disbelief With Economic Progress ClaimBB
A two-year slump, 19 million unemployed and five countries on emergency aid are no reason to take bold, immediate action to spur economic growth, according to European officials set to defend their handling of the debt crisis in Washington this week.



Euro zone posts February trade surplus on lower importsReuters
Biggest ever euro area trade surplusTradingFloor
Net exports rose by EUR 3.3 billion in February to EUR 12 billion, the highest monthly trade surplus in the euro area's history. Judging from January and February, net exports should contribute positively to Q1 GDP.

  BANKING 
Support Grows for European Effort to Fight Tax HavensDealBook / NYT
Efforts to crack down on tax havens is gaining momentum after the number of European countries agreeing to share more bank information doubled. The push against tax evasion could eventually extend to dividends, capital gains and royalties, that would significantly expand government revenues

Europe’s banks need to be recapitalised – nowThe A-List / FT
Structural weaknesses are part of the explanation for the eurozone's predicament. But Europe also made two mistakes in responding to the crisis. First, it failed to recognise the true extent of its banking problem. It believed – or pretended to believe – that the guarantees and recapitalisations of 2008-2009 had addressed the issue whereas weaknesses were in fact much more widespread. Second, it failed to appreciate that excessive private-sector debt was not just an American problem. In Europe too many households and companies needed to deleverage.

Analysis: Euro zone bank troublespots don't come down to sizeReuters
Though the implosion of Cyprus's bloated banking system has put other euro zone economies with outsized financial sectors such as Luxembourg and Malta in the spotlight, loan quality is the real litmus test of a country's financial stability.

How to Kill a Banking Union the German WayView / BB

  ECB
The role of monetary policy in addressing the crisis in the euro areaECB
Speech by Mario Draghi, President of the ECB, at the “Room for discussion” of the Study Association SEFA and the Faculty of Economics and Business, Amsterdam,15 April 2013

The euro exchange rate during the European sovereign debt crisis - dancing to its own tune?ECB (pdf) ,
Working paper no. 1532 by Michael Ehrmann, Chiara Osbat, Jan Stráský and Lenno Uusküla

  PIIGS
Short France?Humble Student

Statement by the Troika on the conclusion of the review mission to GreeceECB


ASIA
  CHINA Q1 GDP
China’s shark’s fin soup slowdown – beyondbrics / FT
China’s ever-diminishing returns – beyondbrics / FT
[chart] China GDP: what a 7.7% slowdown looks like – beyondbrics / FT
China is having a credit-fuelled non-recovery – alphaville / FT

OTHER
*New financial forecastsNordea

This Week's Emerging Markets HighlightsMarc to Market

Emerging Markets Briefer - April 2013Danske Bank (pdf)

FINNISH
Maksutase helmikuussa 2013Suomen Pankki
Vaihtotase oli helmikuussa 0,2 mrd. euroa alijäämäinen, eli alijäämä oli 0,6 mrd. euroa pienempi kuin vuotta aiemmin. Maksutaseen mukainen kauppatase1 oli helmikuussa 0,1 mrd. euroa ylijäämäinen. Yhteenlaskettu 12 kuukauden vaihtotase oli 3,1 mrd. euroa alijäämäinen.