We asked our professors their opinion on whether a 2-speed euro would help.
We don’t understand the Greeks
Everyone is uneasy about the electoral victory of Syriza in Greece and the threat of populism in Europe. The media has been buzzing for days now with comments and analysis, largely talking about what Syriza should do, what should be done by the European Union, Germany, the International Monetary Fund… the consequences of the policies […]
After the Stress Test: Lending in Times of Uncertainty
European banks have just made it through the latest round of stress tests. But now what? Will lending make a come back? Looking toward the future, do these tests really guarantee a clean bill of health? These are just a few of the questions that many people are asking themselves. But really, one question sums […]
The ECB should focus on growth, not just inflation!
The European Central Bank (ECB) plan to lower the official interest rate from 0.15% to 0.05% will not work. What’s the difference between 0.05% and 0.15%? Nothing. There will be no increase in requests or approvals for loans resulting from this 0.1% cut. In July 2012, after lowering the interest rates from 1% to 0.75%, Mario […]
On Principles and Taboos
Major financial crises have always left huge amounts of debt in their wake, followed by incidents of nonpayment. Occasionally the reduction of debt has been concealed, as in the case of Germany, which, thanks to an annual inflation that averaged 17% from 1913 to 1950, reduced the value of its domestic debt to almost zero. […]
