MADRID | By Luis Arroyo | Monetary policies are a by-product of politics, after all, and in Europe, politics are tightly controlled from Berlin, which will probably use the Fed’s reaction as example of what the ECB must do.
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MADRID | By Luis Arroyo | The BIS is one of the institutions that has publicly put more pressure on the US Federal Reserve to change the course of its monetary policy–with disparaging results.
MADRID | By Luis Arroyo | Lower salaries do not always bring more employment. This is a myth. The liberalisation of the labour market is altogether another matter, and in some Eurozone countries–as Spain–we are still waiting for it to be implemented.
MADRID | By Luis Arroyo | If we are a monetary union, there can be no buts or ifs. Spain needs capital to implement its reforms and restore its economy.
MADRID | By Luis Arroyo | Why is the ECB not announcing further interventions, helping investor confidence to recover, offering strangled banks liquidity until they start providing credit again?
MADRID | By Luis Arroyo | It is a grave mistake to stubbornly defend the application of the same strict rules whether the economy is growing or in recession, and social unrest and missed fiscal targets are testament to how wrong the current European policies are.
MADRID | The eurozone’s central bank should have acted as a last resort lender years ago, so peripheral economies would not have had to endure the punishment of excessive prices on market credit.
MADRID | Reigning in the public sector under austerity plans isn’t always good for the private sector, at least not today and not when a country has lost his monetary policy sovereignty.
MADRID | Economic growth is compatible with high debt, particularly when your central bank can make fears of default vanish and interest rates can be contained.
MADRID | What is important is that public debt drops and the economy recovers. And to achieve that, Japan has chosen the opposite strategy than the eurozone’s authorities.