Wednesday, February 13, 2013

Austerity's Unintended Consequences Yannis Palaiologos

''Is the worst of the Eurozone crisis over? The optimists—out of conviction or calculation—say “yes.” The European Central Bank’s promise to purchase an unlimited amount of government bonds from member-states who find their credibility questioned by the capital markets has brought the borrowing rates of the European periphery down to manageable levels without spending a single euro. Ireland, the second Eurozone country to require an international bailout in November 2010, has already made a partial return to the markets for long-term borrowing, while Portugal, which was bailed out in May 2011, hopes to do so later this year. Even Greece seems to be making headway with reforms and fiscal consolidation, the result of which has been that the word “Grexit” no longer passes from European officials’ lips..''

No comments:

Post a Comment