Europe

The US dollar continues to rally as uncertainty over the fate of Greece boosts demand for safety as the Greek tragedy is spinning into a farce.

The country's economy will now shrink because European policy makers fail to understand the dynamics of debt deflation.

There is plenty of room for policy error. The reasons to fear a Lehman-like event still seem compelling. European officials suggest the problem is the lack of implementation of reform and growth measures in Greece. No doubt there is an…

Anti-Euro MP Nigel Farage says the troika's economic policy in Greece is moving that country toward a violent revolution.

I am not particularly shocked or worried about the cancelled European finance ministers meeting. I still think this bailout gets done because Europe and the markets are not prepared for a disorderly default and politicians cannot risk the…

The vagaries of Europe's debt crisis continues to be the most important driver of the short-term price action in the foreign exchange market. Indications that Greek New Democracy leader Samaras would sign a letter of commitment to the aid…

This post discusses how politics and economics will interact in the Greek debt crisis and lead to default and euro zone exit.

Despite the Greek parliament's approval of austerity measures, there is still considerable uncertainty in the Greek situation. This post outlines many of the issues still up in the air.

The US dollar is broadly mixed against the majors and EMs after the market appears to have shrugged off Moody’s downgrades of European sovereigns. Central banks ability to surprise the market remains intact, even in these trying times. It…

We stress again that the loss of AAA is not the end of the world, and one could make the case that AA is indeed the new AAA. However, the Moody’s news comes a time when markets are nervous about Greece, and so some limited fallout to the…