Alejandro Arevalo (Jupiter’s Head of Strategy, Emerging Markets) | One might think that emerging market debt has had difficult year, but it’s been quite the opposite. At the time of writing, the major EM hard currency indices have all returned more than 11% year to date.
By Barry Eichengreen via Caixin | The reform response to the financial crisis was mild compared to that of the Great Depression, but all is not lost.
SAO PAOLO | By Marcus Nunes via Historinhas | It comes from Martin Wolf´s “The Shifts and the Shocks” and is reviewed by Paul Krugman in the New York Review of Books. The following passage of his review nullifies the whole thing: In particular, Milton Friedman had convinced many economists that depression prevention is actually a fairly simple task, which can be carried out by technocrats at the central banks that control national money supplies. According to Friedman, the Great Depression occurred only because the Federal Reserve failed to do its job in the 1930s; if it had acted to rescue troubled banks and prevent a fall in the money supply, catastrophe would have been avoided.
ATHENS | Via Macropolis | A study published in the latest Bank of Greece (BoG) economic bulletin highlighted the deterioration in Greek households’ living and income conditions during the years of crisis (2008-2012).
BARCELONA | By Vinçent Navarro | Germany is not only about minijobs. Although Southern European economies are debating about this measure that Berlin took under Schröder’s government in order to tackle unemployment, much less is said about the German model or ‘Rhineland capitalism’, essentially based on works councils and co-management.
WASHINGTON | By Pablo Pardo | Dean Tenerelli started investing in Spain one year ago. At the time, many of his colleagues thought that he was going too far. Certainly, he went further than anyone else. But, so far, his bet is rendering excellent yields. Tenerelli manages the T. Rowe Price European Stock, a SICAV with more than $900 million (approximately 700 million euros) in assets, of which around $150 million are in Spanish companies shares. Now, others, such as Bill Gates, Warren Buffett and Carlos Slim, have followed this manager’s example and have started to pour money into Spain. Tenerelli has talked with The Corner over the phone about his experience.
The Fair Observer | It is easy to say that Europeans should have more sex. Demography is destiny, after all, or so it has seemed for millennia, and what could be better than sleeping your way to world power? Despite the financial crisis, a diminishing birth rates and seemingly unsustainable welfare states, Glenn Carle believes German leadership might offer a solution for structural reform in Europe.
MADRID | By Antonio Sánchez-Gijón (Capital Madrid) | What is on stake for the new Italian government? The country is living in a contradiction: on one hand it has debt and risk premium under control, but on the other it is struggling with a deep economic crisis. Moody’s has corrected its 2013 GDP forecast set so far at -1%, and has placed it at -1.8%.
MADRID | By Tania Suárez | Director of financial analysis at Profim EAFI, Jose Maria Luna Morales, argues that austerity measures in the euro zone were “necessary” but adds that “some privileges of many public institutions can still be reduced”. He also notes that although “Europe still may suffer months of stagnation”, that does not imply “a long period of stagnation'” for the EZ as a whole.