SAO PAOLO | By Mike Konczal via Marcus Nunes’ Historinhas | Should we endure a mini-recessio, i.e. more bubbles, with lower employment and output, to fight a thing called “financial instability”? I had no idea that Sweden has gone all-in on raising interest rates to fight “financial instability.” (Alas poor Lars Svensson!) Simon Wren-Lewis has details, Krugman has more, and Peter Orszag had a great column about how New Zealand is instead using regulations to fight worries about the financial system.
MADRID | By J.P. Marín Arrese | The summer break has delivered a much needed respite to Spanish banks, yet the forthcoming autumn will bring them a number of hurdles and potential pitfalls. For the author, the most worrying fact is the lack of ambition in performing a much needed restructuring.