Juan Ramón Rallo
13 August 2012

Madrid's persistent pressure for the European Central Bank (ECB) to monetise part of its debt is necessarily a self-defeating strategy. Once the Spanish government recognises that it is unable...
Philip Booth
18 May 2012
1 comment

Working out who exactly owes what to whom in the eurozone is an increasingly difficult job. Money is pouring out of Greece and now, it would appear, Spain at a rapid rate. €700m apparently...
G. R. Steele
23 November 2011

Mainstream macroeconomics presents monetary and fiscal interventions as independent policy options, and this spills over to institutional structures. In the UK, for example, the Bank of England and...
G. R. Steele
17 November 2011

The European Central Bank (ECB) sits at the centre of a clearing system (‘TARGET2’) for national central banks (NCBs) within the eurozone. The pattern that has built up, particularly...
Philip Booth
7 October 2011

Recession in the eurozone could trigger widespread sovereign defaults The eurozone sovereign debt situation is on a cliff edge. This may sound like a statement of the obvious given the chaos...
Philip Booth
20 September 2011

There is much discussion about how to deal with the indebtedness of eurozone countries. Economic analysis is not straightforward, of course. We always have to be aware of the "...
Philipp Bagus
28 June 2011

A second aid package to the Greek government hinges on severe austerity measures. Why doesn’t Greece simply default and leave the euro as so many Greek protestors demand on the streets...
G. R. Steele
18 April 2011

The eurozone came with fine aspirations: according to article 127 in the consolidated version of the Treaty on the Functioning of the European Union ‘the primary objective of the European...
G. R. Steele
10 December 2010

Mervyn King has been criticised for crossing a line which separates monetary policy (the Bank’s remit) and fiscal policy (the Treasury’s remit). That line is imaginary: a legacy of...
André Azevedo Alves
7 December 2010

After Greece and Ireland, it seems increasingly likely that Portugal may become the third euro-area country to be bailed out by an EU/IMF rescue package. In the past week, the yields on Portuguese (...
Holger Zemanek
1 April 2010

“Borrow as much as you like – the ECB will bail you out” – that was arguably the implicit message of European Central Bank president Jean-Claude Trichet last week...
Philipp Bagus and David Howden
30 November 2009

While quantitative easing has received much press, qualitative easing has been neglected. Qualitative easing consists of policies that deteriorate the average quality of the assets that a...