The Corner | April 16, 2015 | For the first time since the beginning of the financial crisis, Japan overtook China as first holder of U.S. treasuries. Low rates and other monetary policy instruments carried out by Japan have prompted local investors to move their money to the US.
ATHENS | April 8, 2015 | By Nick Malkoutzis via MacroPolis | Since it was first recorded in 1944 by American public administrator David Lilienthal, the following anecdote has been told many times and in many ways: A traveller asks a local man for directions and, after much thought, the latter turns to the visitor and says: “My friend, I tell you; if I were you, I wouldn’t start from here.” As Greece and the eurozone remain some distance apart on how to conclude their bailout negotiations, it seems a good time to return to this tale.
April 8, 2015 | By Yannis Mouzakis via MacroPolis | Just as the five-year anniversary of Greece’s first EU/IMF programme approaches – and despite marked procrastination in a number of other fronts – Greece’s coalition set up a parliamentary committee to investigate the country’s bankruptcy and the signing of its two memorandums with the troika.
The Corner | March 25, 2015 | EU data appears to show that the currency bloc is finally on the way to recovery. Figures from Spain today are likely to confirm the country’s improvement, but concerns remain about the predicament of the Greek economy.
The Corner | March 23, 2015 | Mario Draghi’s speech will be in focus as traders seek further information on the effect the ECB’s QE programme is having. This week is likely to see strong growth figures posted in the US, while inflation in the eurozone will continue to languish. Greece will again be under the microscope on international markets, as direct talks between leader Alexis Tsipras and German Chancellor Angela Merkel finally get under way.
Intermoney | March 6, 2015 | From 2007-2015, global debt has increased 289% in excess GDP. The rapid increase of global indebtedness and financial asset prices could actually be defined as a global bubble with a major destabilizing factor: the significant surpluses accumulated by certain countries that force others to adopt a deficit position. International liquidity growth has only raised the volume of speculative money flows, which are now able to destabilise any economy, regardless of their economic virtues.
ATHENS | March 3, 2015 | By Nick Malkoutzis via MacroPolis | There was a defining moment in the recent election campaign. It wasn’t New Democracy’s decision to go full negative by running a campaign ad that suggested Armageddon was around the corner. Nor was it To Potami’s claim that it would unveil its plan for reaching an agreement with Greece’s lenders after the elections. Instead, it came on a mild Thursday night in Omonia Square.
ATHENS | By Nick Malkoutzis via MacroPolis | Is Friday’s agreement at the Eurogroup a good deal for Greece? In some respects it is but in more respects it is not. Above all, the four-month agreement leaves Greece walking an economic and political tightrope over the next four months without knowing what lies at the end of it.
NEW YORK | By Peter Tchir via Truman | Much has been made of the “Game Theory” behind the Greek Debt Negotiations. It is complex as it is not just Greece versus Germany, but other countries have a say, and then there are the purely EU level politicians, making this all very complex. I have been thinking a lot about one of the classes I took in college that had some element of “Game Theory” to it.
MADRID, February 20, 2015 | By Fernando G Urbaneja | The Government and Spanish companies are taking advantage of low interest rates as a means of reducing overall indebtedness.