Euro

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. [...]

Making sense of the ECB’s pandemic interventions

The ECB's policies are the macro-economic equivalent of trading on while insolvent. All these interventions are papering over the cracks in the European economy, but they are not solving them. [...]

Brace for European financial Armageddon

Not even Friedman could have foreseen a systemic, multi-layered crisis as the one we are witnessing today. And though he predicted the euro’s eventual failure, he did not tell us what would happen afterwards. We still do not know the answer to that. But we will soon find out. Brace yourself. [...]

Trapped in a low-interest environment

The reason for the Germans’ current Weltuntergangsstimmung (apocalyptic mood) is economic. A new book promising “The biggest crash of all time” before 2023 tops Amazon.de’s bestseller list. And now the Bundesbank, the country’s central bank, has joined the choir of doomsday merchants with its annual Financial Stability Report. [...]