World economy





Liquidity demand and the inflation horror

The Federal Reserve is hoarding Treasuries, interest rates in the US have plummeted and the inflation menace overhangs like a large knife above the American economy. Not at all, points out economist Luis Arroyo.


No Picture

Economic hazards of a moral French Budget

Why would president Hollande place such tax burden on the rich and corporate? He said France’s 2013 Budget was meant to demonstrate the euro zone that austerity and fairness can walk together the way out of the crisis. It looks as he’d rather protect a bloated state, though.



The ECB came to the fore, the European Union must now follow

The ECB reduced official interest rates by 0.25%, but the interest rate spread for loans to firms and households has widened. Credit conditions vary from one country to another in the euro area. The European governments have to fulfil their duties if the euro is to stabilise. 


Hopeful but viable: Spain’s 2013 Budget

JLM Campuzano, analyst at Citigroup, treads through some of the figures in the Spanish general budget for next year. He finds effort, risk, savings, some uncertainties and a lot of unavoidable pain.