“The financial risk and resilience of English local authorities in the coronavirus crisis” By Kate Ogden and David Phillips, courtesy of IFS Local authorities (LAs) across the country are among those on the front line of the coronavirus crisis. But geographical differences in demographic and economic structures make different parts of the country […]
“An option for the EU: blow up debt inside a bunker” By Sergio Baggiani, courtesy of IREF Debt mutualisation is an option to manage the expected rise of sovereign debt and the need for a greater supply of low-risk bonds. Yet, this option could run into political difficulties. European Bonds (details here, 2016) are […]
By Dr. Juan Castañeda and Professor Tim Congdon, courtesy of IEA In 2020 the world economy is likely to experience an output fall and increases in unemployment rates comparable to those in the Great Depression years of the early 1930s. The policy reaction to the pandemic will increase budget deficits massively in all the […]
“ECB calls for European Integration via a Common Fiscal Policy Response” By Gordon Kerr, Cavin O’Driscoll and Enrico Colombatto, courtesy of IREF ECB President Lagarde announced a keenly awaited new policy statement on April 30th. There was to be no increase to the Euros 750 billion Pandemic Emergency Purchase Programme (PEPP), but the economic […]
By Libertad y Progreso, courtesy of Ámbito Financiero “Whoever bets on the dollar loses.” This famous phrase was said by former Minister of Economy Lorenzo Sigaut in 1981, to try to convince Argentines to stop saving in dollars. As expected, reality prevailed with an exchange rate escalation. Today the BCRA is […]
By Alicia García-Herrero and Elina Ribakova, courtesy of the Bruegel Institute COVID-19 is by far the biggest challenge policymakers in emerging economies have had to deal with in recent history. Beyond the potentially large negative impact on these countries’ fiscal accounts, and the related solvency issues, worsening conditions for these countries’ external funding are […]
By Thomas Hoenig, courtesy of the Mercatus Center The federal government and the Federal Reserve have implemented unprecedented spending and monetary policies to combat the economic crisis resulting from the COVID-19 pandemic. These policies, while necessary in the short term, place an ever larger mortgage against the nation’s future income; and extending them […]
By Maria Demertzis, courtesy of the Bruegel Institute Necessary though it was, the temporary relaxation of state aid rules in the EU has brought grave unintended consequences. Through indiscriminate support, the EU is rapidly moving from an even playing field that promotes the “survival of the fittest” to a situation where only those […]
“Banking regulation in the Euro Area: Germany is different” By Nicolas Véron, courtesy of the Bruegel Institute Despite progress in recent years towards a single banking policy framework in the euro area – a banking union – much of the German banking system has remained partly sheltered from uniform rules and disciplines that now […]
By Andy Blom, TES Correspondent Amidst all of the Coronavirus confusion, hoopla and hysteria, a couple of big questions are emerging: When do we open? Who foots the bill? Serious, and some not so serious, thinkers are putting forth ideas, suggestions, warnings and bulls**t ideas. Will there ever be a normal? (Yes.) Was this […]