As Ben Bernanke put it, “people don’t appreciate how tight fiscal policy has been” Continue reading
Indeed, unemployment in Greece has hit a new record high Continue reading
Two thousand five hundred EU officials are set to lose their jobs in the next four years as part of new austerity measures for EU institutions Continue reading
The Federal Reserve chairman, in testimony before the Joint Economic Committee of Congress on Wednesday, suggested that ending the nation’s long-term unemployment crisis would be a more effective way of shrinking government deficits and debt than the austerity cocktail funneled down our throats by Congress and the White House in recent years. “The loss of … Continue reading
There is, unfortunately, growing evidence that the tainting of the long-term unemployed is happening as we speak. One piece of evidence comes from the relationship between job openings and unemployment. Normally these two numbers move inversely: the more job openings, the fewer Americans out of work. And this traditional relationship remains true if we look … Continue reading
“How well did this panic-induced austerity work?” “Some will say that this is the price that has to be paid for restoring budgetary orthodoxy. But is this so?” Those are the questions asked by Paul De Grauwe andYuemei Ji in Panic-driven austerity in the Eurozone and its implications. (Quotes to follow) We provide some answers in Figures … Continue reading
Three years ago, a terrible thing happened to economic policy. Although the worst of the financial crisis was over, economies on both sides of the Atlantic remained deeply depressed, with very high unemployment. Yet the Western world’s policy elite somehow decided en masse that unemployment was no longer a crucial concern, and that reducing budget … Continue reading
THE euro area is mired in recession and unemployment in the single-currency zone continues to scale new heights, reaching 11.8% on figures out this week, up from 10.6% a year earlier. But the European Central Bank did nothing to help today, leaving its key interest rates unchanged. The governing council took the decision unanimously, ECB … Continue reading
With rampant unemployment spreading misery in southern Europe and companies shutting factories across the continent, workers around the European Union sought to unite in a string of strikes and demonstrations on Wednesday. Most European governments have in recent years had to cut spending, pensions and benefits and raise taxes aggressively to bring public debt under … Continue reading
Greece’s debt to GDP will hit 189.1pc and the economy is expected to contract by 4.5pc next year, the finance minister revealed in the 2013 budget presented to parliament. via Debt crisis: Greece debt to GDP to hit 190pc – Live – Telegraph.
Greece is spiraling into the kind of decline the U.S. and Germany endured during the Great Depression, showing the scale of the challenge involved in attempting to regain competitiveness through austerity. The economy shrank 18.4 percent in the past four years and the International Monetary Fund forecasts it will contract another 4 percent in 2013 … Continue reading
Trade unions say the European Commission’s new industrial policy must be followed up with concrete actions. The European Commission published a communication on industrial policy last week, attempting to re-launch manufacturing industry and calling fora “new industrial revolution” in Europe. The industry is ready to lead the revolution, but it needs the right instruments, European … Continue reading
Over the last week, a Londoner and a Glaswegian have publicly embarrassed themselves with statements made about the current economic situation. One is an academic historian who hasn’t fully understood history. The other a politician who is seeking to deny the obvious and somehow blur his own culpability in driving the British economy back into … Continue reading
Spain sank into recession in the first quarter and economists said spending cuts aimed at meeting strict EU deficit limits together with troubles in the banking sector would delay any return to growth until late this year or beyond. It is the second recession in just over two years for the euro zone’s fourth largest … Continue reading
From the anti-austerity firebrands of Greece’s imminent elections to the corruption crusaders in Prague, from the Pirates of Berlin to the populists who scored well in France’s presidential election, a new wave of anti-establishment parties are on the rise across Europe, posing a threat to the political elite. Their causes vary – some are from … Continue reading