The Great Debate UK

from MacroScope:

Political economy and the euro

February 8, 2010

The reality of  'political economy'  is something that irritates many economists -- the "purists", if you like. The political element is impossible to model;  it often flies in the face of  textbook economics;  and democratic decision-making and backroom horse trading can be notoriously difficult to predict and painfully slow.  And political economy is all pervasive in 2010 -- Barack Obama's proposals to rein in the banks is rooted in public outrage; reading China's monetary and currency policies is like Kremlinology; capital curbs being introduced in Brazil and elsewhere aim to prevent market overshoot; and British budgetary policies are becoming the political football ahead of this spring's UK election. The list is long, the outcomes uncertain, the market risk high.

from MacroScope:

The euro gets a warning shot of Greek fire

January 6, 2010

Juergen Stark , Germany's ECB executive board member, is well known as a true believer in tight fiscal discipline, so his reported comments in Italy's Il Sole 24 Ore about not bailing Greece out of its financial difficulties are not out of character. But the market reaction must have at least given pause for thought to EU leaders wondering how far to go in coddling their wayward child.

from The Great Debate:

Global rebalancing to weaken dollar, quietly

September 24, 2009

-- Neal Kimberley is an FX market analyst for Reuters. The opinions expressed are his own --forex

from The Great Debate:

Don’t cry for the dollar, yet

September 18, 2009

agnes1-- Agnes T. Crane is a Reuters columnist. The views expressed are her own --

It looks bad for the dollar, but looks can be deceiving.

Its sharp decline in the last week has pushed the euro to its highest level in a year and reignited fears that there's only one place for the dollar to go, and that's down.

Latvia needs more help to preserve euro peg

By Paul Taylor
June 15, 2009

paul-taylorLatvia needs more support from the European Union if it is to preserve its currency peg to the euro and avert a chain reaction of devaluations and bankruptcies around the Baltic and beyond.

Ireland’s euro pain

April 9, 2009

REUTERS– Margaret Doyle is a Reuters columnist. The opinions expressed are her own –

Few British cheers for euro amid crisis

By Paul Taylor
December 1, 2008

paul-taylorPaul Taylor is a Reuters columnist. The opinions expressed are his own.

The financial crisis has rallied support for euro adoption in many European countries outside the currency bloc, yet in Britain the discussion is so far confined to a few voices among the policy elite.