(forthcoming on Voxeu.org) Many observers of the European Sovereign debt saga had long realized that the ECB was the only European institution up to the task of avoiding a breakup of the Euro, as all newly forged institutions, the ESFS/ESM, were at the same time ill designed and inadequately funded. However, by indulging in sharp […]
italy
Moody’s Moods (on Italy)
In a recent report on the Euro Area Periphery, the rating agency Moody’s makes the point that the implementation of structural reforms by the euro area’s periphery countries have achieved improvements, although have not yet fully resolved the external imbalances that developed in these countries prior to the crisis. The report also says that the […]
A Spread Fixing Scheme: Monti’s Pyrrhic Victory?
from voxeu.org Together with Mario Balotelli, Mario Monti was heralded in Italy for bashing Germany at the recent EU Summit. In the latter case, the satisfaction stemmed for achieving an explicit mandate for the EFSF/ESM to “stabilize” yields differentials by intervening in the primary and secondary market. Yet , as in the case of Italy’s ephemeral […]
On Reuters on Privatizations
Kylie MacLellan’ s article on Privatizations in EU, briefly quoting an interview
Too Tight For Comfort
says the IMF’s Fiscal Monitor (about the fiscal policy stance in 2012 for advanced economies).
Will Monti’s Liberalizations Jump Start Italy’s Growth?
The main and most surprising success of the Monti government so far was the ability to push through Parliament two structural and “drastic” measures, the pension reform and the new property tax. without incurring any significant opposition from the unions or from political parties(with the exception of the Northern League). To a large extent this […]
Italy, A Feudal Society
When it comes to inequality, we usually consider the differences in disposable income (or wealth) among citizens at a given time. But one thing to live in a society where there are inequalities, but also opportunities to climb the social ladder. In these circumstances a degree of inequality can be positive, as it provides incentives […]
Berlusconi explained to Romanians
(Interview to Matei Dobrovie, of Adevarul, Romenia. “How Italy lost its economic competitveness” , 9/1/2012 Google translation) PM Monti announced new measures to support the liberalization and competition in key sectors of the economy and industry to enhance economic growth. Italy has lost high-tech competition with the U.S., Japan, China and India and is short […]
Happy New Year..
..to all the readers of this blog, which has just entered it’s third year of life. Best, pm
Monti and the “Mother of All Reforms”
(wonkish) Whether Mario Monti will be remembered as Italy’s savior (from default) or as just another well-meaning economics professor, will largely depend on the government’s “Phase2”. In “Phase 1”, the government aimed at adopting “structural” reforms that would durably curb the budget deficit. The pension reform, the property tax and and the anti tax-evasion measures […]
Letter to Mario Xmas
(from roubini.com 25 Dec 2012) Dear Mario Xmas, This year I have behaved quite well with the students, so I ask you bring me these reforms (knowing that you may not not satisfy many of these wishes, for reasons of political arithmetic). I would like you to bring me: · the privatization of the […]
The Last Christmas
Today I went into a shop to buy the last Xmas presents. I was in doubt whether to buy an extra one, and the shop-keeper, in order to encourage me said: “You know, you should really buy it. This is going to be our last Xmas, for sometime”. A pretty effective way to summarize the […]
Lessons For/From the European & Italian Debt Crisis
Foto Lo’ Savorelli 1.How Do Epidemics Spread? 2.What are the Sources of Vulnerabilities in Europe? 3.Interdependence or Contagion ? 4.Italy and Europe: Contagion or Home Made? 5.Italy: Credibility or Fundamentals? 6.European Institutions: What Reform? Those interested in these questions will find here my presentation (in English) at the Conference “Dialogues on the Crisis and Growth“, […]
Mario Monti’s Last Bet
(from Economonitor, December 5, 2011) Mario Monti’s government today approved an ambitious plan that may be the last bullet to save Italy from default and preserve the EZ as we know it. The challenge is to combine a large fiscal consolidation plan, roughly 2% of GDP, with the need to foster growth, while sharing the […]
Italy and the Eurozone: it’s time to inflate
My interview to Viv Davies of Voxeu, discusing Monti’sstructural reforms, deflation risk, fiscal union, a two-step budget procedure for EU, the Eurobonds, the role of the ECB
Rumors of an IMF Involvement in Italy could be Detrimental
A very good point by Nouriel on why the expectation of a temporary bailout may accelerate the crisis : Going back to fundamentals, even if austerity and reforms were to eventually restore Italy’s debt sustainability, the loss of market credibility and the time that it will take to restore it require a lender of last […]
The Naught Super Euro Club
Today’s Le Figaro writes that Merkel and Sarkozy are drawing up an emergency plan for a Super Euro Club to be discussed in the EU meeting of December 9 and to be implemented as early as January February 2012. The plan may envisage new “intrusive” powers to the European Commission and the EU Council, possibly […]
Debating Italy and Greece on The Real News Network
More at The Real News
Berlusconi’ Time Bomb and the Swap Curve
by Paolo Manasse and Giulio Trigilia Berlusconi’s Partito della Libertà is bitterly divided as to what to do with Mario Monti. The doves (ex Christian Democrats) favour a loyal support to Monti, while the hawks (ex-socialists and ex fascists) are crying shame for the “suspended domocracy” and the “the bankers coup”. In order to keep […]
On CNN World
My post on Monti and life after Berlusconi