Slovenia

Today’s post is a potpourri of events I am seeing from around the world that impinge on macro. Europe. As expected, European consumer price inflation came in at 0.5% following the unexpected dip in German inflation. I believe the ECB will…

Moody's Investors Service released the following statement in conjunction with a ratings action it took today on Slovenian sovereign debt.

I am not going to say a whole lot here in this post because I have been writing non-stop about Europe of late. I just want to share the European links with you. I think what the links show is that the European paradigm is in transition from…

Over the past weekend, Italy's caretaker cabinet formally approved plans to begin paying its overdue bills to domestic suppliers and service providers. Its official arrears have aggravated underlying problems, such as access to credit by…

Europe is in recession right now, but the US is in a weak but fairly long-lived economic recovery. The difference in economic fortunes owes entirely to differing policy responses in both regions. In Europe, the economic paradigm has…

Here’s round two of the links, this time on Europe. It is mostly about the ECB and the rumours about unlimited liquidity. I have already written about this twice today so I won’t say any more. But I will note the Reuters article on how…

I have already highlighted some of the issues being reported on Eurobonds. But I should point out that I believe the Germans are already considering Eurobonds despite official denials. The other major story is contagion. Poland’s currency…

Italian 10-year yields are now down below 6.5%, that’s a full percentage point lower than on Wednesday. Market players suspect ECB intervention is behind the sizable move. Still, everyone is breathing a sigh of relief as we head into the…

Countries like Slovenia have their own problems. As the euro zone economy worsens, their willingness to support bailouts decreases. And the European institutional principle of unanimity will almost certainly mean that bailout fatigue leads…

Slovenia’s problems highlights the fundamental deflationary bias of the euro system and all fixed exchange rate systems more generally.