Search Results for deflation

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Misteries to solve about Spain’s structural unemployment

MADRID | By Julia Pastor | Overwhelming figures on Spanish unemployment are as unbereable and unjustifiable as difficult to undo. Nevertheless, it is convenient to remember that these numbers start from a structural rate of around 9% which would always distort comparisons with other European countries as well as final conclusions. According to the last European Commission estimates, natural rate of unemployment in the country has increased from 10.9% in 2006 to 23.2% in 2013, which will increase structural figures to 26.6% by 2015. This gives some sort of “apocalyptic view” over Spanish economy’s state, JP Morgan’s says to its clients. Maybe economists at the EC “forgot to make some reasonable adjustments.”


US labour costs

The Report Everyone Forgot About

NEW YORK | A guest post by Benjamin Cole via Historinhas |The U.S. Bureau of Labor Statistics tracks “unit labor costs,” and back on February 6, they came out with their latest report.  Usually I look for this report, but this time I missed it. The news? We are in deflation, when it comes to labor costs.


Parques Reunidos buy Australian water park

Lagarde pleads for cooperation before Sydney G20’ s meeting

WASHINGTON | Via IMF’s Staff | Finance Ministers and Central Bank Governors will meet on the Australina city  on February 22-23. The IMF’ s staff has prepared a note as an anticipation of the event. The institution says the recovery is still weak and significant downside risks remain, thus further action and cooperation are needed to promote financial stability and robust economic upturn.


germany's flag

Could Germany do more?

BERLIN | By Alberto Lozano | While Germany was receiving criticism from all sides for its surplus current account, its industry continued setting records and exporting its products all around the world and Euro zone was still strengthening its pillars for a brighter future.


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Troika inquiry in Greece: talk to the organ grinder, not the monkey

ATHENS | Op-ed via The Agora | The European Parliament’s inquiry into the troika and its record in eurozone bailouts sounds like a welcome effort to hold Europe’s crisis managers to account. Unfortunately, the inquiry’s report is likely to miss the bigger picture, because of the European Parliament’s institutional navel-gazing and narrow focus on the troika – a team of civil servants – rather than its political masters.


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The Threats of Emerging Countries For the Euro

MADRID | By Luis Arroyo | The appreciation of the euro, in a deflationary context as the current one, may be the last push so as to cross the ECB’s red line and reach a Japanese style deflation. Macroeconomic variables don’t encourage optimism, especially because inflation in the euro zone is getting closer and closer to the ECB’s zero red line.



Euro fears deflation

Losing patience with the ECB

MADRID | The Corner Team | Investors are most likely to hear the ECB repeat (again) how prepared it is to act and use all kind of unconventional devices on next Thursday meeting, after inflation in the euro zone fell to 0.7% in December, its lowest level since the common currency was born. “As fears of  deflation increases, the central bank cannot remain unable to act,” analysts say.


Lagarde and Draghi

Lagarde and Draghi: train crash at Davos

MADRID | By Julia Pastor | Christine Lagarde, Managing Director of the International Monetary Fund  and Mario Draghi ECB’s president were in the same Davos panel on Saturday. Both talked about signs of recovery across the world and the euro zone. However, as she said that deflation potential risks in the euro zone must not be ignored, he minimized danger and insisted once more that the bank is prepared to deploy a QE’s policy if deflation appeared.


abenomics 1 year on 1

Abenomics one year on

SAO PAOLO | By Marcus Nunes | Shinzo Abe was elected in December 2012 on a promise to revive growth and put an end to deflation. How have his promises ‘performed’ one year after taking power? The ‘performance’ of the so-called Abenomics will be illustrated by a set of charts.