The Catch-22 rules of the Euro Monopoly game
To make the Eurozone more stable, it would be desirable to have stricter and enforceable rules. But because it is so unstable, no such rules can ever be introduced. [...]
Euro crisis
Big rouble in little Europe
Europe will face difficult monetary conditions for years to come. If the bank is unlucky, inflation expectations will solidify, and rapid price increases will become a permanent feature for the Eurozone. [...]
The next Euro crisis has just begun
Just as Europe’s economies are emerging from the Covid-19 recession, the next big European crisis is already visible on the horizon. It is just not clear what kind of crisis it will be: another debt crisis, an inflation crisis, or a combination of both. [...]
Economic rationality long gone in Europe
The times of economic reason and rationality are long gone in Europe. [...]
Will Europe’s recovery be worse than the recession?
The picture emerging for Europe is worrying. Maybe a big wave of insolvencies will wash over the continent right when the public might have believed that the pandemic recession is over. [...]
The coming monetary crisis in Europe
Europe's crisis was bad but not as bad as it could have been. Still, the worst is yet to come. [...]
The Eurogroup would not want to start from here
The great irony is that Donohoe now gives Germany a Eurogroup President who embodies Berlin’s own policy inclinations like no other. And yet, the new president will not help with Germany’s goal of keeping the Eurozone united during its stewardship of the EU this year. [...]
Europe’s trillion euro problem
Some problems are too complicated to cause the fear they deserve - like Target 2, Europe's trillion euro time bomb. [...]
Monetary policy isn’t a panacea
In the wake of the financial crisis power shifted from politicians to the ECB, now it’s time for elected governments to address the underlying causes of Europe’s malaise. [...]
An ECB dead end
If you are a born optimist, you may have concluded by now that the euro crisis is over. Indeed, we have not heard much about it lately. No bailouts, no bank runs, no Greek elections. It almost feels like financial stability. If you are a realist, however, you would be looking at two figures and know that we are right in the middle of the euro crisis. [...]