News

G20 Fails to Act.. Again
During the last year and a half, leaders of the Group of 20 leading nations have met four times. And although expectations for each gathering were elevated, not a single one brought an essential outcome. And if it continues to be so, maybe one should question how essential is the institution of G20 to the world's prosperity?
Published on 2010-06-29

G-20 Leaders Agree to Tackle Deficits
World leaders agreed on Sunday to take separate paths toward shared goals of lasting growth and safer banks as two years of global crisis give way to a fragile economic recovery.
Published on 2010-06-27

Central Banks Exit Strategies Overview (06.26.2010)
With the global recovery progressing, central banks are trying to find a way out of loose monetary policy. And while the Reserve Bank of Australia, Bank of Canada and Bank of New Zealand increased interest rates already; the US Federal Reserve, European Central Bank, Bank of England, Bank of Japan and Swiss National Bank are likely to wait much longer.
Published on 2010-06-26

BRIC's Monetary Policy Overview (05.15.10)
Although BRIC's, with the exception of Russia, have already initiated some form of monetary policy tightening, they have been very reluctant in rising cost of credit. Indeed, series of interest rate hikes may hamper consumption and cause and inflow of speculative capital looking for an higher yield. This in turn may trigger the currency appreciation, hurt exporters and eventually stop the recovery. In this article, we take a close look at every BRIC member monetary policy.
Published on 2010-05-15

World Stocks Fall on Waning Optimism over Europe Bailout
The euro halted a two-day gain and stocks fell, with Chinese equities entering a bear market, amid concern Europe’s indebted nations will struggle to cut deficits even after an almost $1 trillion emergency loan package.
Published on 2010-05-11

Greece Faces `Unprecedented' Cuts as $159B Rescue Nears
Greece accepted an unprecedented bailout from the European Union and International Monetary Fund valued at more than 100 billion euros ($133 billion) to prevent default, agreeing to budget cuts that unions called “savage.”
Published on 2010-05-02

Central Banks Exit Strategies Overview (05.01.2010)
With global recovery taking center stage, central banks are trying to find a way out of lose monetary policy. Yet, the task seems to be more difficult than many have expected since the wrong timing or technique of an “exit strategy” may destroy a still fragile growth.
Published on 2010-04-30

US Consumer Confidence Hits Highest Level Since 2008
Consumers in the U.S. turned more optimistic in April as the growing economy raised hopes jobs will become available.
Published on 2010-04-27

Greece Asks EU to Trigger Bailout Agreement
Greece called for activation of a financial lifeline of as much as 45 billion euros ($60 billion) this year in an unprecedented test of the euro’s stability and European political cohesion.
Published on 2010-04-23

Euro Zone Nations Offer 30 Billion Euros to Greece
Euro zone finance ministers approved a giant 30-billion-euro ($40.12 billion) emergency aid mechanism for debt-plagued Greece on Sunday but stressed Greece had not requested the plan be activated yet.
Published on 2010-04-11

EU Agrees on Greek Rescue Terms as Fitch Downgrades Debt
Euro zone officials agreed on Friday on the terms of a possible financial rescue for Greece as a credit ratings agency downgraded Athens' debt by two notches citing a worsening economy and rising borrowing costs.
Published on 2010-04-09

Manufacturing in U.S. Expands by Most Since 2004
Manufacturing expanded in March at the fastest pace since July 2004, indicating factories will be a source of strength for the U.S. recovery in coming months.
Published on 2010-04-01

Greece Will Get Help But Europe's Credibility May Falter
After several weeks of meetings and failed negotiations, the EU has finally reached a deal for Greece. The deal is suppose to rescue the country from defaulting on its debt. Yet, looking at the essence of the agreement which is putting on the table the possibility of a bailout from the International Monetary Fund, many economists, including us, are considering it as a major failure since the Euro Zone unity and  economic and monetary union were shown to be very weak.
Published on 2010-03-26

Eurozone Agrees to Greek Rescue Deal
Eurozone leaders on Thursday night agreed a rescue package for Greece including assistance from the International Monetary Fund as well as bilateral loans from fellow euro-member states.
Published on 2010-03-26

Central Banks Exit Strategies Overview
With the ongoing global recovery taking center stage, central banks are trying to find a way out of loose monetary policy. Yet, the task seems to be more difficult than many have expected since the wrong timing or technique of an “exit strategy” may destroy a still fragile growth.
Published on 2010-03-25

IMF Role in Greek Rescue Gains Support Among European Chiefs
European leaders showed signs of bowing to German demands for an International Monetary Fund role in any rescue of debt-stricken Greece, seeking to prevent the fiscal crisis from undermining the euro.
Published on 2010-03-25

EU Indecision Pushes Greece Towards an IMF Bailout
It has been almost six months since Greece said it may not be able to service its sovereign debt because its budget deficit would reach 12.7% of GDP in 2009. Yet, after weeks of meetings and negotiations with the European Union, there is still no signs of any bailout package, and both Greece and the EU risk paying a very high price for so much bureaucracy and uncertainty.
Published on 2010-03-22

EU Ministers Discuss Standby Plans for Greece
EU finance ministers on Tuesday discussed standby plans drawn up by countries using the euro to provide Greece with financial help if it becomes the first state in 11 years of monetary union to seek such aid.
Published on 2010-03-16

Japan's Economy May be Struggling but its Debt is Sustainable
At the beginning of February, Standard & Poor’s downgraded Japan’s long-term outlook rating to negative. Yet, unlike Greece, which is also troubled by a rising national debt, the probability that Japan will default on its government bonds is pretty small.
Published on 2010-02-25

Greece Needs Help but EU Bureaucracy May Be Fatal
It has been almost two months since S&P and Moody's downgraded Greece’s sovereign rating after it became clear that the Eurozone country may default on its government bonds. Yet, besides a guideline on how to solve the budget problems and a promise of support if things get out of control, the Euro Area members are not rushing to provide any financial help to its troubled pal. Moreover, many EU members seem to be underestimating the magnitude of problems in Greece which may prove to be a serious mistake in the months ahead.
Published on 2010-02-17