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EUROPE
After two
lively years, the new Eurosceptic party may split
Charlemagne:
And then there were four – The
Economist
Politics is
fracturing all over Europe, but nowhere so dramatically as in Spain
Weakness
helps Germany exports, but also hurts Greece, other debtors
Sixty years
ago, half of German war debts were cancelled to build its economy. Yet today,
debt is destroying those creditors
UNITED KINGDOM
Bank of
England to Look Into Implications of EU Exit – WSJ
BoE
mis-sends Brexit email to press – FT
Email error
reveals UK bank's EU project – BBC
EUROPEAN CENTRAL BANK
ECB's
Draghi urges euro zone to unite for economic reform – Reuters
Draghi speech:
mistakes, misunderstandings and defunct models – Merijn
Knibbe
Draghi and
Fischer reject claim central banks are too politicised – FT
UNITED STATES
Yellen:
Expect Hike in 2015, Several Years before Rate "back to normal" – Bill
McBride
Fed chair
affirms plans for rate hike this year – WaPo
FINNISH
Suomen sana ei Kreikka-päätöksissä paina – HS
Hallitus haluaisi, että Kreikan uudesta hätärahoituksesta päätettäisiin
yksimielisesti. Kanta voidaan kuitenkin ohittaa.
Uutisanalyysi: Timo Soinihan on porvari – Verkkouutiset
Perussuomalaisten puheenjohtaja Timo Soini nimitetään
alkavalla viikolla ehkä valtiovarainministeriksi. Millaista talouslinjaa hän
ajaa? Ainakin yritykset voivat olla tyytyväisiä.
Ketkä taloudesta puhuvat ja miksi puhetta on syytä
tutkia? – Timo
Harjuniemi
EKP:n pääjohtaja: EU:n rakenteiden on pakko uudistua –
HS
Heikossa eurossa piilee sudenkuoppa – talouden
piristymisen pelätään hidastavan Euroopan talousremonttia – HS
Keskuspankki pelkää talouden piristymisen hidastavan
Euroopan talousremonttia
Uutisanalyysi: Hallitusohjelmaan uskottavuutta
perälaudalla – Verkkouutiset
Drakmat takaisin? Saksan Schäuble ehdottaa
rinnakkaisvaluuttaa Kreikalle – Verkkouutiset
Saksan valtiovarainministeri Wolfgang Schäuble nostaa
keskusteluun ajatuksen rinnakkaisvaluutasta Kreikalle.
Harvardin huippuprofessori: Euroalueen kriisi kestää
vielä vuosia – HS
Harvardin huippuprofessori HS:lle: Euroalueen kriisi
jatkuu vielä vuosia – Verkkouutiset
Huippututkija: Euroalue on täysi katastrofi – Suomen
Uutiset
Taloustutkimuslaitos Capital Economicsin perustaja ja
johtaja Roger Bootle pitää Eurooppaa katastrofina, joka etenee täysin väärään
suuntaan. Bootlen mielestä Ison-Britannian tulisi erota EU:sta ja Kreikan
eurosta.
ECONOMICS
SECULAR STAGNATION
An
impossible secular stagnation trinity, charted – FT
Secular
stagnation: The history of a heretical economic idea – vox
The notion
of secular stagnation – a state of negligible or zero economic growth – is back
in the headlines. Questions naturally arise about its intellectual antecedents.
This column discusses how the concept rose and fell with the economic fortunes
of advanced industrialised nations. Political trends and trends in economic
theory played a part in its trajectory, with the notion closely connected to
the idea that the level of government debt should be allowed to rise.
ENERGY
Global
energy subsidies fuel climate change, says IMF study – FT
Governments
around the world will subsidise the cost of oil, gas and coal to the tune of
$5.3tn this year, fuelling pollution and climate change as they misallocate the
equivalent of what is spent globally on public health, according to a new
study.
Free
Lunch: The enormous cost of cheap carbon – FT
The IMF
points to a treasure trove for finance ministers with courage to act
MACROPRUDENTIAL
Finance
chiefs urge action on bubble fear – FT
A group of
leading financial executives have urged authorities around the world to beef up
their crisis-busting tool kits amid fears that ultra-low interest rates have
increased the risks of financial instability.
The Role
of Financial Services in Society – WEF
Statement
in support of macroprudential policies
EUROPE
Why we
should not blame the ECB for low returns on German savings – Bruegel
The fall in
inflation and in real returns is behind the dramatic decline in interest rates
over the past 3 decades
Is the
ECB “expropriating” savers? – ECB
Europe’s
hidden economy – Europp
/ LSE
How
governments can bring undeclared work out of the shadows
Mind the
gap (and its revision)! – Bruegel
Revisions
in estimated output gaps are large, while the size of revisions is related to
the variability of the current account balance
CENTRAL BANKING
Why are
some central banks so coy about the impact of fiscal policy? – Simon
Wren-Lewis
This is not
about monetary policy makers trying to avoid treading on the toes of fiscal
policy makers. It is about monetary policy makers supporting a political
position which chooses to be economical with the truth about the impact of
fiscal policy.
Negative
nominal central bank policy rates - where is the lower bound? – BIS
Remarks by
Mr James McAndrews, Executive Vice President and Director of Research of the
Federal Reserve Bank of New York, at the University of Wisconsin, Madison, 8
May 2015.
Of
negative rates and reserve managers – FT
John C.
Williams: Monetary Policy and the Independence Dilemma – FED
The dilemma
of central bank independence has been around a long time. Past attempts to
solve it through an operational mandate such as the gold standard have proven
ineffective. The alternative approach of achieving economic goals through
reliance on a fixed policy rule also poses practical challenges. A more
promising path is to enhance accountability and transparency within an existing
goal mandate framework.
OTHER
How does
it feel? – Scott Sumner
Some of my
liberal friends have trouble understanding why Paul Krugman is such a
lightening rod for criticism from the right.
Everything he says seems so reasonable.
Why is
libertarianism such a target? – Tyler
Cowen
If we are
talking about “The Left,” the libertarian is about the most welcome
intellectual opponent there is.
Global
Trade Is "In The Doldrums", BofAML Says – ZH
The
question of whether capitalist economies are self-correcting and will
eventually revert to mean growth has received renewed interest given the
underperformance of most economies six years after the onset of the Great
Recessions. While the idea of persistent high unemployment was central to
Keynes’ General Theory, it was quickly abandoned by the neoclassical synthesis.
Talk on
Minsky's Financial Instability Hypothesis & the crisis of 2008 – Youtube
Stephen
King Warns "The Second Great Depression Only Postponed, Not Avoided" – ZH
How
we’ve all been duped into subsidising our employers – FT
Investors
looking for a “capex recovery” may be missing the point. The secret capex story
may be that businesses make better use of nonbusiness assets, and that part of
the capex cycle (including replacement capex) masquerades under a “retail
sales” pseudonym in the future.
Free
exchange: Basically unaffordable – The
Economist
Replacing
welfare payments with a “basic income” for all is alluring, but expensive
The IMF: Of Words and Actions – Francesco
Saraceno
What is
austerity? – The Economist
IMF
Paper Finds That Too Much Finance is Bad for Growth – Yves
Smith