Confirmed: Eurosystem is rescuing Cypriot banks through ELA
The last balance sheet released by the Central bank of Cyprus confirms that the cypriot banking sector is under emergency liquidity assistance injection.
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The dark sides of Iceland’s revival
Iceland is often portrayed as a role model for managing its economic collapse, but while part of this acclamation is justified, it should not be idealized. Following my last post where I attributed much of the country’s revival to one specific decision to cancel 70% of its external debt, I would like to highlight here some facts that tend to
» Read moreCan Spain do as Iceland did?
The spanish governement is announcing a bailout plan for its private banks that could end up in injecting up to 10 bn of capital in Bankia. Of course, Spanish people are not very happy about that. On twitter, the hashtag #hagamoscomoIslandia (let’s do as Iceland did) is currently trending. But can Spain really do as Iceland did ?
» Read moreAn initiative for an unconditionnal basic income in Switzerland
An initiative to establish a new federal law “For an unconditional basic income” was formally introduced in Switzerland in April. The idea, which consists quite simply of giving a monthly income to all citizens that is neither means-tested nor work-related, has generated commentary throughout the Swiss blogosphere. My review can be read on Global Voices.
» Read moreFrench elections: a defeat without victory
French elections: a defeat without victory
So, François Hollande wins the elections against a Sarkozy on its last legs after a disastrous mandate. Again, not such a surprise. Sometimes life is quite boring when you are one step ahead.
» Read moreThe end of easy growth
While chief economist at the IMF, Raghuram Rajan was one of the very few economist that prevented the crisis before 2008. The True Lessons of the Recession, his last paper (pdf) is definitely worth reading: In fact, today’s economic troubles are not simply the result of inadequate demand but the result, equally, of a distorted supply side. For decades before the financial
» Read moreAddressing the complexity of finance
While complexity and opacity of finance is unfortunate, to some extent it appears to be needed for the good functioning of the economic machine. Understanding finance’s opacity is thus necessary to reform our modern financial system.
» Read moreFrench banks withdraw their money from PIIGS countries
Another warning signal that the euro crisis is far from over : French banks withdrew roughly 62bn euros from the so called PIIGS countries last quarter, Bank for Settlements’ new data release shows.
» Read moreIs the ECB secretly bailing out Cypriot banks?
The European Central Bank is suspected of providing emergency liquidity assistance Spanish banks. However, there intriguing evidences that Cyprus banks are primarily benefiting from this discrete liquidity support.
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