Mohamed El-Erian, currently chief economist with German insurance group Allianz, and touted as a possible sucessor to Stanley Fischer, believes that monetary policy cannot do any more. And that the governments of the democratic countries have not been capable of coordinating economic policies which solve the problems created by the last crisis.
Claudio Borio, chief economist at the Bank of International Payments (BIS) in Basel, believes that the question that differentiates what has been happening in continental Europe from what has been happening to some extent in the US, the UK and other economies, including Spain, is the extent to which the banking problems and the asset quality problems have been adressed head-on.
Spain is the second country after Italy to benefit from the Juncker Plan, which ends in 2018. There are already 53 operations ongoing, with 4.5 billion euros financing from the EIB, which will facilitate the mobilisation of over 28 billion euros of total investment.
Xavier Colás (Moscow) | Russia had a taste of democracy in the 1990s, and people’s needs increased. With the rouble’s brutal devaluation, the average Russian felt free, but at the same time associated this with huge economic decline. And now Russians prefer economic security to freedom.
Juan de Antonio, CEO of Cabify, firmly believes that disruption is the main driver for progress in business. “Wealth is generated outside our continent and Cabify is an example of a Spanish company which would have died if we hadn’t left here.”
Fernando Rodríguez |Javier Cremades is chairman of The Spanish Association for Minority Shareholders of Listed Companies (AEMEC). The association probably represents the most important group of former Popular shareholders on the map of litigants which seems to be being created. Cremades gives his view on this case and on other issues like the divided image foreign investors have of Spain.
Fernando Barciela | “In the 2008 crisis, the only car assembly industry where production expanded was in Spain. It’s only through crises that you find maximum efficiency. They are good for making everyone react and put every effort they can into improving the production chain. In fact, in CIE we are always going through some crisis or other,” explains Jesús María Herrera Barandiarán, CEO of CIE Automotive.
Fernando Rodríguez | The Spanish equity market is benefitting from the idea that Spain is one of the eurozone countries which is going to do better. And then there is the effect of low oil prices, which is doubly beneficial for Spain compared with Germany or France.
The Laffer curve, named after Arthur Laffer, demonstrates, in a conceptual and educational way, that from a certain level of tax onwards, revenues fall because people don’t have any incentive to work. And the Supply Economy originated from this.
Argemino Barro | The Conference Board is a non-profitable organisation set up just over half a century ago by 12 big corporations to soften their public image during a time of social unrest. Nowadays it offers analytic tools for different sectors of the economy and has 1,200 companies from 60 countries as partners. Its chief economist, Gad Levanon, analyses here the situation of the US economy in the Trump era.