Here
are the ”best” from my posts of the ending week. Last week’s edition here.
EUROPE
ECB
Spells Out New Supervisory Powers in Draft Paper – WSJ
The ECB will become the ultimate authority for issuing and revoking bank
licenses in countries that sign up to the European Union's banking union
project, and assume the power to set higher capital requirements than those
applied at national level
EU Banks’ Debt
Addiction Threatens ECB-Led Overhaul – BB
When Europe’s leaders set out in June 2012 to break the
“vicious circle” between banks and sovereigns, they left rules for treating
government bonds untouched, an oversight that may subvert their drive to
prevent a recurrence of the debt crisis.
Outright Monetary
Infractions – Project Syndicate
Hans-Werner Sinn: The German Constitutional Court has delivered its
long-awaited decision on the ECB’s “outright monetary transactions” program. The
Court has now declared that it fully endorses the plaintiffs’ arguments, and
that the ECB's scheme to purchase potentially unlimited volumes of eurozone
governments' bonds does indeed violate EU law.
Germany’s constitutional court has strengthened the
eurosceptics – FT
Wolfgang Münchau: The
OMT is a phantom programme. It was never triggered. Then again, it may have
already served its purpose: fooling investors into believing there is a
backstop when there is not…So what would happen if the ECB wanted to trigger
the scheme? Following this ruling, I am not sure the Bundesbank could
participate.
Give the ECB the
Power to Save Europe's Economy – View / BB
OMT focuses on financial stability; avoiding deflation is no less
important. Bigger, bolder forms of quantitative easing may soon be necessary to
ward off this danger. One way or another, this tool must be made available.
Meet
The Men With The Plan Behind Italy's Bloodless Coup – ZH
Bank of England Inflation Report: Five Key Takeaways – WSJ
Monthly Bulletin, February 2014 – ECB
German, French growth creeps above forecasts in
last months of 2013 – Reuters
Euro area GDP up by
0.3% in Q4 2013 – Eurostat
UNITED STATES
Consumer
credit and deleveraging – Sober Look
A very different picture emerges - one of significant consumer
deleveraging that is only now beginning to stabilize.
Janet
Yellen Doesn’t Mince Words and More on Her Testimony – WSJ
OTHER
Which Hedge Fund Strategies Will Work In 2014:
Deutsche Bank's Take – ZH
Why
monetary policy should ignore bubbles – Quartz
Reinhart & Rogoff:
Recovery From Financial Crises: Evidence From 100 Episodes – The Big Picture
FINNISH
Hetemäen ryhmä lykkäisi sopeutusta ensi
vaalikaudelle – YLE
Yle Uutisten
tietojen mukaan valtiosihteeri Martti Hetemäen johtama ekonomistiryhmä
sopeuttaisi taloutta ensi vuonna miljardin euron verran. Hallituksen pitäisi
kuitenkin tehdä päätökset säästötoimista seuraavalle hallituskaudelle.
Pääministerin ilmoitus eduskunnalle
hallituksen politiikasta vuonna 2014 – VN
Valtioneuvoston selonteko EU-politiikasta
2013 – Eduskunta
Eurokriisi
on euron vika – Juhani
Huopainen / US