European Crisis
A Mental Experiment for establishing the relative mood for solving the Crisis in Europe, in Britain & in the USA
, 23/07/2012
I have a hunch: that the Eurozone’s profound difference to both the United States and Britain is that, unlike these anglosaxon ‘currency unions’, the Eurozone’s real elite does not want the Crisis to disappear quickly and painlessly. In this post I offer a mental experiment that will help each and every reader rule on the […]
On the solvability of the Euro Crisis and the mood in Germany: Concluding my debate with Kantoos Economics
, 22/07/2012
Kantoos Economics (KE) replied to my post on what constitutes a rational and decent critique of Germany’s stance during this Euro Crisis. After a series of exchanges between us, I think that this dialogue is now reaching its natural limits (click the following for a blow by blow perusal of our debate: KE1 was KE’s original […]
What the EIB makes the ECB unmakes: The latest from the Greek front
, 22/07/2012
“We just showed that good news is possible in Greece”, said a beaming Greek minister the other day when it was announced that the European Investment Bank (EIB) was about to start funding investments in Greece again, after it withdrew toward the end of 2011 (in fear of losing its triple-A rating by associating itself […]
It is now official: The Eurozone's monetary transmission system is broken
, 17/07/2012
Under normal conditions, the interest rates that you and I must pay on a home loan, a car loan, our credit card, a business loan are pegged onto two crucial rates. One is the rate that banks charge one another in order to borrow from each other. The other is the Central Bank’s overnight rate. Alas, […]
Criticising Germany: Three principles for the fair assessment of proud nations
, 09/07/2012
Generalising is the first step toward racism. Every sentence beginning with “The Germans believe this” or “The Greeks do that” is an initial slide on a slippery slope leading, eventually, to bigotry. As I have argued before (click here for a video version) there is no such thing as the Germans, or the Brits, or the Greeks […]
The Latin Troika's Coup: what is left of the joy it generated a week later
, 04/07/2012
The half life of joy and celebration, following Europe’s Summits, is continuing to slide. The 19th such Summit since the Crisis erupted was, as I wrote here, the most successful (in that it produced, for the very first time in two and a half years) a decision that is not wholly fraudulent, irrational and irrelevant. It was, […]
Unanimity is not essential to cutting the ‘Gordian debt’: our letter to the FT as published today
, 02/07/2012
The other day I posted a letter that Stuart Holland and I sent to the Financial Times. Today it was published. Click here for the FT or…
June 2012 EU Summit Verdict: A good decision that will, probably, go to waste
, 29/06/2012
Mrs Merkel went to Brussels intent on striking two birds with one stone, pick up her bag immediately and return to Berlin with no further ado. The stone was the fraudulent re-packaging of existing structural and EIB funds (with the addition of a paltry 10 billion euros) into a grandiose-sounding ‘Growth Pact’. The two birds […]
Saving the Eurozone does not depend on Germany: Our letter to the Financial Times
, 28/06/2012
From Professors Stuart Holland and Yanis Varoufakis Europe is deadlocked in assuming that resolving the Eurozone crisis must be unanimous. Yet it does not need this. It could do so by ‘enhanced cooperation’ which needs support by nine or more member states while, on a motion for an enhanced cooperation policy, only those supporting it […]
A(nother) PROPOSAL FOR SAVING THE EURO ZONE: Guest post by Marshall Auerback
, 28/06/2012
This blog was established, initially, for the purposes of proposing solutions to the euro crisis; and in particular to propagate our Modest Proposal for Resolving the Euro Crisis. Two and a half years later, the eurozone is crashing and burning, while European politicians are steadfastly refusing to adopt a systemic solution. Those of us who […]
Open letter to a good friend and colleague (who happened to become Greece’s Finance Minister yesterday…)
, 27/06/2012
Dear Yanni, On the one hand I am writing to congratulate you. And on the other to express my disdain towards those who handed my friend the good ship’s wheel after the vessel has struck the iceberg. Utterly familiar with your effervescent optimism, I know you mean it when you declare confidence in Greece’s capacity […]
Greece is ungovernable (while the euro's derailment continues): On ABC tv 7.30 Report
, 26/06/2012
Following the latest Greek election, I was interviewed on the ABC’s 7.30 Report. In the interview (which you can watch here), I presented a gloomy, yet realistic, view that it really matters little now what happens in Greece. “Greece is finished”, I argued, as long as the derailment of Europe’s euro-system is proceeding unhindered. Read […]
And the Good Ship Greece Sails On: ‘Letter’ to an italian colleague
, 24/06/2012
A few weeks ago I was approached by Andrea Adriatico, a theatre director from Bologna’s Teatri Di Vita with an interesting request: Could I write a ‘letter’ to some fictional Italian economics professor, outlining on a colleague-to-colleague basis, the Greek ‘situation’ as it is experienced by a Greek economics professor. That letter would then be read […]
Greece, Italy, Spain, Germany in the shadow of a disintegrating euro: Interviewed by Doug Henwood
, 22/06/2012
Click here for the 30 minute interview (and look for the 21st June show).
Mariana Mazzucato on the role of the EIB in spurring Investment-led Growth
, 21/06/2012
Professor Mariana Mazzucato, of Sussex University, has produced pivotal research on the role that public financing plays in fostering not only investment but also competition. Here she is appearing on Bloomberg to explain the importance of the European Investment Bank as a potential driver of growth, innovation and competition in the European Union. She also […]
My duel with Deutsche Bank exec, Wolfgang Nowak (on CBC Radio)
, 21/06/2012
Here is my reply to Wolfgang Nowak, Deutsche Bank executive and former Merkel advisor, telling CBC that Greece should be thrown out of the Eurozone. Click here for Mr Nowak’s audio
We don’t need more time to hang ourselves – on CNN Int's Amanpour show, last night
, 20/06/2012
Click here for a brief clip and CNN’s own blog on this interview. (CNN) – In the aftermath of its most recent election, will Greece remain in the eurozone, and will a pro-bailout government begin a recovery? Yanis Varoufakis, Professor of Economics at the University of Athens doesn’t think so: “Even if God, his angels and every […]
The Greek Election as a manifestation of Europe’s Hobbesian Moment
, 19/06/2012
The frenzy of reporting the Greek election is coming to a close. The world is now, quite understandably, swivelling its antennae toward Spain, Italy, Mexico and the G20. It is, therefore, a good moment to take stock of the main lesson the Greek crisis’ recent twist should teach a wary world: Beware of free riders […]
Interviewed by Robert Wright on the Euro Crisis
, 18/06/2012
Extensive interview with Robert Wright (author of The Evolution of God, Nonzero) on the Euro and Greek Crisis – for bloggingheads.tv. Click here.
Greek Election Result: An assessment
, 18/06/2012
Greek voters gave their contradictory verdict: While 55% voted for parties that stood explicitly against the ‘bailout’ terms and conditions, a pro-’bailout’ government is about to be formed – such is the nature of Greece’s electoral system (which rewards the largest party with a bonus of 50 additional MPs in the 300 seat chamber). The […]
Message to the BBC and assorted international media on this Greek Election Day: Try to recover your journalistic principles even at the eleventh hour!
, 17/06/2012
Over the past 48 hours, as Greek voters are mulling over their options prior to entering the polling stations, the international media have indulged in a frenzy of disinformation and scaremongering. Gone is the nuanced reporting of the BBC, nowhere to be seen the critical approach to the Euro Crisis that the rest of the […]
Ponzi Austerity: Interviewed on the Keiser Report
, 15/06/2012
Max Keiser and Stacy Herbert interviewed me, on the Keiser Report, on my notion of Ponzi Austerity, with particular reference to Spain, Ireland and Greece. Watch the video below and let me know what you think. But before you watch it, allow me to state one disagreement of mine with Max and Stacy’s interpretation. Max […]
Is the ECB's Target2 critical for the euro's future? A debate between Felix Salmond and Marshall Auerback
, 14/06/2012
Following Marshall Auerback’s guest post on the problem with Target2, and how it can potentially lead the German Constitutional Court to throw a spanner in the works of the euro system, Felix Salmon published an interesting article arguing that all this fuss about Target2 is the result of a misunderstanding of what Central Banks do […]