debating progressive politics in Europe and beyond
This may well turn out to be the low point in the political fortunes of George Osborne. Of course the loss of Moody’s AAA means nothing whatsoever. Not for the first time, his opposite number Ed Balls gets it right: It would be a big mistake to get carried away with what Moody’s or any [...]
The rating agencies are at it again. Moody’s Investors Services says it’s likely to downgrade U.S. government bonds if Congress and the White House don’t reach a budget deal before we go over the so-called “fiscal cliff” on January 2, when $1.2 trillion in spending cuts and tax increases automatically go into effect. Apparently the [...]
Standard and Poors (S&P) was right to downgrade the sovereign debt of nine euro area countries and to put virtually all of them on negative watch (implying a substantial probability of a further future downgrade). The chances of default remain very low (in the overall landscape of debt instruments that agencies rate) but they have [...]
“[T]he financial problems facing the eurozone are as much a consequence of rising external imbalances and divergences in competitiveness between the eurozone’s core and the so-called “periphery.” As such, we believe that a reform process based on a pillar of fiscal austerity alone risks becoming self-defeating, as domestic demand falls in line with consumers’ rising concerns [...]
Reports indicate that this Sunday afternoon euro area central bank presidents have been dragged away from their Kaffee und Kuchen, fishing stools, family dinners and… but I shouldn’t speculate further on what European central bankers normally do on a Sunday afternoon. Their task is to decide whether to act to arrest market panic and, specifically, [...]
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