Economy

Now it's on to a Greek coalition government with the FinMin at the helm. Get ready for more austerity!!

Here’s an interpretation of the euro zone I have been meaning to run by you and I touched on it in the update to my post on how austerity in Europe works. In a fixed exchange rate environment like the euro area, you don’t have currency…

The guys at Brown Brothers Harriman said this morning that we shouldn’t expect much from the G-20. They seem pretty pessimistic about the politics in Greece too. If you want a visual representation of what they’re saying, here you go.

The bulls assert that the market is already discounting major risk and is reflecting widespread fear that may prove unfounded. That might be true if the market had collapsed as in 2000-2002 or 2008-2009. However, the current market is more…

I would say that Stiglitz is right that Iceland did well in large measure because Iceland was not subjected to the kind of austerity that you traditionally see in these kinds of programs and which is an anti-growth policy. We are seeing the…

This post describes how austerity works in the European Monetary System where the euro is used as a currency. I will start by framing the difference between currency users and currency creators, then move to how central banks and government…

Sixty percent of the rich Chinese people have said they intended to migrate from China in a recent poll. What would that mean for FX reserves, interest rates and the economy?

Sheila Bair argues that Europe's banks are undercapitalised due in large part to regulatory capture.

"The Committee also decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the…

Jobs and the lack of them are top of the agenda for policymakers and increasingly groups of protestors gathered in the financial districts of New York, London, and elsewhere. Unemployment in these countries is in danger of reaching 10%. In…