CRISIS


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The SS explanation of the crisis

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.


greece

The IMF crisis and how to solve it

ATHENS | By Gabriel Sterne via The Agora | The IMF is approaching its 70th birthday and the Greek programme has been a candidate for one of the most credibility-sapping in its history. Here I trace the IMF’s role in programme from its stormy launch; its misfiring implementation; the Fund’s half-hearted apology; and ongoing efforts to draw lessons and revise its sovereign debt restructuring framework, which appear destined to deliver insufficient meaningful change.  A transparency revolution is both necessary and feasible. It worked for central banks in the 1990s. Why not the Fund?


Angela' s lies

Angela’s little lies

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.


Tenerelli, fund manager investing in Spain

Tenerelli, the fund manager who ‘discovered’ Spain in the midst of the crisis

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.


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May Day’s long read: Sex, Demography, and the Future of the European Union

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.


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Italian government says andiamo, Europa!

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%.


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“The eurozone must find economic growth without State aid”

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.