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fiscal policy

euro coins

In Europe 28th March 2019

The Eurozone’s major fiscal stimulus of the decade may arrive not with a common plan but rather through national initiatives

The market has scarcely contemplated the possibility of a major fiscal stimulus in the Eurozone. However, the strategists at Morgan Stanley believe that, after two years marked by a restrictive fiscal policy, we could see the largest fiscal stimulus of the last decade, not through a common plan, but rather through national level initiatives, especially in Germany, France, Italy and Spain.

Jerome Powell

World economy 27th September 2018

Jerome Powell Does Not Believe The Current Fiscal Policy Is Sustainable

The Federal Reserve raised its benchmark interest rate by 25 basis points. The effective rate will evolve in a corridor between 2% and 2.25%. The dots graph reflecting monetary policy committee members’ expectations suggests 3 rate increases in 2019, 1 in 2020 and none in 2021. As pointed by Philippe Waechter from Natixis IM, this profile, for 2019 and 2020, is unchanged from last June forecasts.

New episodes of tension originating in Italy could affect other peripheral countries

In Europe, Spanish economy 4th July 2018

Is Spain Better Than Italy?

Now “the waters appear to have calmed” in Italy, analysts at Intermoney, however, believe we will see more episodes of tension originating in Italy. The key moment is likely to come at the end of the summer or in the autumn. This situation should be seen as a scenario for tension rather than rupture, although contagion to other peripheral economies could be possible.

Former Greek finance minister Yanis Varoufakis at the Ifo Institute

In Europe 17th June 2018

Should Germany Pay For Greece, Italy And others?

In a speech given on 11 June 2018 in the IFo Institute (Munich), former Greek Finance Minister Yanis Varoufakis noted the urgent need for a fiscal reform, which France and Germany see in a very different way, in order to save the Eurozone.

US savings rates are deteriorating

World economy 27th November 2017

US Shouldn’t Forget About Their Savings

In the last few months, we have witnessed a worrying downward revision to US savings rates, in addition to the clear declining trend in savings.  If US households don’t dedicate part of the resources freed up by the government’s planned tax reform to savings, we will be facing some very bad news.

European economic growth

In Europe 30th December 2016

Europe: Out Of The Laboratory, Back To The Labyrinth

BoAML | The ECB has closed many doors in December. The 2015-16 strategy of monetary policy covering for fiscal loosening to facilitate structural reform has changed.We are back to national governments having to navigate through strained fiscal trajectories, leaving very little room for mistakes. Potential growth prospects are not great, not only in the periphery.

tamborini 1

Interviews 31st May 2016

“What Austerity Has Done Is To Highlight The Poor Management Of The Crisis”

Roberto Tamborini, author, Professor of Economy at Trento University says The Corner at this interview that “we can only start on the road towards a satisfactory recovery with fiscal and monetary coordination in the eurozone, and this fiscal stimulus can only be coordinated via Brussels. This directly calls into question the eurozone’s economic governance, one of the pillars of which is the Maastrich principle of exclusive national responsability.”