By Alicia García-Herrero at Bruegel | Sitting on a pile of debt, China’s only way out is to deleverage: more pain now for sustainable growth later. [Figure: China’s augmented fiscal deficit as % of GDP.]
Conn M. Hallinan | On one level, the recent financial agreement between the European Union (EU) and Greece makes no sense. Not a single major economist thinks the $96 billion loan will allow Athens to repay its debts or get the economy moving anywhere but downward.
If it is true that we are in a “Secular Stagnation,” we may need alternative (Keynesian) policies.
What is the meaning of all this dynamic of successive bankruptcies and bailouts?
Germany’s central bank calls for more supervision of the adjustments and reforms in Greece, while the IMF casts doubts over the sustainability of Greek debt.
ATHENS | By Jean Bastian via MacroPolis | Greece and quartet of international creditors have a common interest in completing the third financial assistance package as soon as possible.
The IMF is insisting on the need to evaluate a debt relief for Greece. Will it happen?
NICOSIA |By Marios Zachariadis via MacroPolis | Policies undertaken from a narrow national perspective that encourage systematic fiscal surpluses, coupled with a national consensus on wage suppression between unions and industry facilitated by the state, impact negatively upon domestic spending while increasing national saving.
BERKELEY | July 18, 2015 | By Barry Eichengreen via Caixin | The Greek crisis and the sharp increase in volatility on Chinese stock markets have been the two principal sources of financial headlines – and worries – in recent days. To be sure, the situations in Athens and Shanghai are quite different, yet they have a common set of implications.