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A website forum in which senior fellows of the Peterson Institute for International Economics discuss and debate their responses to global economic and financial developments as they occur each day and offer insights that others might overlook.
Winston Churchill once quipped about Americans: They always do the right thing—after they have tried everything else. One can now say the same of Europeans and their handling of banks. After steadfastly refusing to do so ever since the beginning of the global financial crisis in 2008, last week the European [...]
It did not take long for the trillion dollar rescue in Europe to stir second thoughts in global financial markets. Late Sunday night in Brussels Europe assembled its “BIG package” to fight its sovereign debt crisis and any contagion from Greece. On Monday global markets rallied. Yet since Tuesday, [...]
Europe’s leaders seem finally to have risen to the occasion in their crisis management, as they put together something genuinely BIG over the weekend to support the financial stability of the eurozone. It was quite literally the first “2 a.m. Sunday morning moment” for Brussels (albeit a little after the markets opened [...]
Greek bond yields, perhaps predictably, came down this week after the final announcement of the International Monetary Fund/eurozone bailout plan on Sunday. However, this was less due to the expected announcement of the details of the Greek bailout plan than to the fact that the European Central Bank (ECB) unexpectedly [...]
In the next few days, Greece’s Prime Minister, George Papandreou, will meet Chancellor Angela Merkel of Germany and President Nicolas Sarkozy of France in what will likely become the defining moment for a crisis that is shaking Europe. What they decide is also likely to shape the future of the euro [...]