The ECB Finally Announces QE

ECB President Mario Draghi said the central bank will in March launch an expanded asset purchase program amounting to 60 billion euros ($69.67 billion) a month.  It’s a bigger number than was first suggested, but it still won’t work in terms … Continue reading

The Whole Political Map Of Europe Could Soon Be Re-Drawn: Greece, Italy And Maybe Spain?

The Greek elections could well represent the beginnings of a complete political overhaul in Europe.  Yesterday, we also noted that Italy’s current political stability was more apparent than real and that anti-euro sentiment was growing.  Today, we look at Spain … Continue reading

What Does Greece’s Election Mean For Italy?

The Greek election on January 25 poses a danger for Italian PM Matteo Renzi that has gone largely unnoticed, as the result could catalyze explicit dissent in the premier’s Democratic Party just as he needs his members of parliament to … Continue reading

The Limits To Quantitative Easing

Take a look at this piece by the economist Michael Woodford from several months ago. It is heavy reading, but I think could become increasingly relevant (‘Conventional and Unconventional Monetary Policy with Endogenous Collateral Constraints’, NBER Working Paper 19711, … Continue reading

Jeff Sachs vs. Paul Krugman

Economist Jeff Sachs has a new piece in The Guardian in which he basically suggests that Krugman’s anti-austerity campaign was misconceived.  The money quote: Krugman has vigorously protested that deficit reduction has prolonged and even intensified what he repeatedly calls … Continue reading

Greece Is The Sideshow; Italy Is The Big Cahuna

In Rome, Prime Minister Matteo Renzi is getting ready for the election of Italy’s head of State. The election will in all likelihood take place at the end of January. Meanwhile, Renzi is devoting much of his energies to overcoming resistance … Continue reading