If Mario Monti achieves his goal and sits again as the prime minister of Italy, the message sent to the rest of the periphery will be one of great uncertainty and suspicion: lack of democracy and national accountability will not spark popular support to reforms, but most probably the opposite.
Articles by Miguel Navascués
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The ability of central banks to raise investors’ confidence is wearing off. More so when the European Central Bank has become a liability for the US Federal Reserve.
Do you remember the vast injections of public cash in insurer AIG and the TARP operation to clean banks’ balance sheets? They cost American taxpayers no penny at all, and have now been completed with success. Hello, Brussels, anyone listening?
Mr Draghi, governor at the European Central Bank, should listen to his American colleague at the Federal Reserve. And follow suit by means of expnasionary monetary policies even if inflation reaches 4 percent.
MADRID | European Central Bank governor Mario Draghi may retain more power than presidents and Economy ministers of the euro area country members, but does he has the same insight? Not at all. The entire EU is condemned to recession.
A less leveraged banking sector has helped Canada to find its way towards economic recovery. But the more aggressive monetary policies of its central bank also explain the success in dealing with the current crisis.
Spanish president Mariano Rajoy’s reluctance is more than understandable because there is no assurances about the reach of the OMT operations, nor their effects. Moreover, Brussels has recanted more than once, already.
German pro-austerity forces, allied with their Spanish collaborators, are managing the crisis with a strong hand, but in exactly the wrong direction.
The extremists of the Tea Party have ruined the Republican Party and threaten now with bringing to a halt the Congress and the government. Economic indicators are already signalling danger.
Constantly struggling to keep up with the austerity imposed by the Troika, Greece has managed to cut public spending much more efficiently than it’s acknowledged. Economic recovery, though, is still nowhere to be seen. The IMF is right to rethink the current policies before it is too late.