stability

  • 30 Mar @ 15:31

    The anticipated agreement on the expansion of the EU’s total available rescue funds should be welcomed, but all indications are that the deal likely to be announced today will be interpreted as a half-hearted approach that reflects compromise more than it does commitment. We’ve long stated that the move was necessary, and the narrowing of…

  • 07 Feb @ 18:24

    The focus now is naturally on whether the Bank of England will sanction more QE at this week’s MPC meeting, but there are other issues that the Bank should be thinking about at this point in time. What has been notable in the money markets is the contrast between developments in sterling markets compared to…

  • 23 Jan @ 12:38

    According to a Bloomberg story today, European lawmakers have strengthened the latest draft of the fiscal compact to reflect many of the criticisms made earlier this week by the ECB. EU finance ministers will discuss this latest draft at their next meeting on January 23rd. Should the structural budget deficit deviate “significantly” from the target…

  • 14 Nov @ 11:53

    Since its inception over a decade ago, one of the major structural shortcomings of the single currency has been the lack of a fiscal union. Despite the best endeavours of the Stability and Growth Pact (SGP), fiscal monitoring without proper enforceable punitive measures was always going to be a recipe for serious slippage. In 2010,…

  • 08 Nov @ 19:00

    The European Central Bank (ECB) should not go beyond the its own mandate, regardless of the intensity of the crisis, said its chief economist Jürgen Stark, in a speech in Lucerne in Switzerland. “The intensity of the crisis should not be used as an excuse to throw overboard the principles that can ensure the long-term…