eurozone periphery

In February, I penned a piece on how and why Greece will exit the eurozone since there seemed to be so much chatter about the coming Grexit. However, as I have said in the past, a Grexit will not happen any time soon. I strongly believe…

By Paul De Grauwe, Professor of international economics, London School of Economics, and former member of the Belgian parliament and Yuemei Ji, Economist, LICOS, University of Leuven This post was first published at VoxEU Germany’s large…

Yalman Onaran has written up a lengthy review of the deposit flight now ongoing in Europe. It is a reminder that Mario Draghi's plan to backstop Spanish and Italian sovereign debt can only do so much to stop redenomination risk, the…

By Sober Look Analysts often talk about how the weak euro helps exporters in the Eurozone, particularly Germany because of its massive export sector. But is Germany the main beneficiary? Which other nations want the euro to weaken further?…

An extremely important interview with ECB board member Joerg Asmussen was carried in the Frankfurter Rundschau recently. Below is a translation with key bits highlighted. Afterward I will interpret his remarks in light of ongoing…

This week's second weekly-length post is just another review of the Price Waterhouse Coopers study that is big news in the German press. I have now seen the numbers in a bit more granular detail and I wanted to run through them for me…

While the ECB may certainly now buy as many peripheral bonds as it wishes if it deems convertibility risk to be a real issue money is already trickling into cash strapped peripheral economies through the arcane tool of emergency liquidity…

Ireland was hit hard by the financial crisis in 2009 - before Greece and Portugal came on the scene. It took a complete recapitalization of the banking system via "bad bank" structure called Irish Bank Resolution Corporation (IBRC) that…

I want to revisit Richard Koo's comments three weeks ago after his meeting with a number of German policymakers. I think they are illuminating in terms of why Euro crisis policy is as it is. And given the downturn in German economic…

Many orthodox economists ironically adopt something close to a “loan pusher” argument: the excess global saving pushed interest rates down, leading to excessive borrowing by debtor nations that consumed beyond their means. Although the…