Europe Economics Update Capital controls likely, but they can’t prevent Grexit Accelerating deposit outflows from Greek banks and the ECB’s reluctance to fill the gap with further emergency loans have increased the likelihood that capital controls are imminent. We discuss the... 19th June 2015 · 1 min read
Europe Economics Update Spain’s external adjustment has further to run While Spanish exports continue to perform well, imports are also surging as domestic demand recovers. Without further competitiveness gains, Spain’s current account risks falling back into deficit. 19th June 2015 · 1 min read
Europe Economics Update Another scary peek at Greece’s debt dynamics A look at Greece’s debt outlook using plausible economic assumptions underlines the inevitability of a substantial form of default, inside or outside the euro-zone. 18th June 2015 · 1 min read
Europe Economics Update Norges Bank signals a further rate cut this year We suspect that today’s interest rate cut by the Norges Bank, from 1.25% to 1.00%, won’t be the last loosening of monetary policy this year. 18th June 2015 · 1 min read
Europe Economics Update SNB has more work to do in its fight against the franc The Swiss National Bank’s decision to leave its deposit rate at -0.75% presumably reflected the franc’s stabilisation at a slightly lower level. But we expect renewed upward pressure on the currency... 18th June 2015 · 1 min read
Nordic & Swiss Economics Update Norges Bank signals a further rate cut this year We suspect that today’s interest rate cut by the Norges Bank, from 1.25% to 1.00%, won’t be the last loosening of monetary policy this year. 18th June 2015 · 1 min read
Nordic & Swiss Economics Update SNB has more work to do in its fight against the franc The Swiss National Bank’s decision to leave its deposit rate at -0.75% presumably reflected the franc’s stabilisation at a slightly lower level. But we expect renewed upward pressure on the currency... 18th June 2015 · 1 min read
Europe Economics Update Greece’s default options This Update takes a detailed look at the forms of debt default that Greece might employ to reduce near-term financing pressures and lower its debt burden. There are various possible options, but the... 16th June 2015 · 1 min read
Europe Economics Update Is Cyprus a blueprint for Greece? Cyprus’ recent return to economic growth and its fairly swift liberalisation of capital controls might indicate that Greece could resolve its problems without leaving the euro-zone. However, there are... 16th June 2015 · 1 min read
Europe Economics Update Italy still not ready to pay down its debt Italy’s fiscal position is gradually improving. But contrary to the message from official forecasts, Italy has not yet done enough to start paying down its colossal public debt. 16th June 2015 · 1 min read
Europe Economics Update Will Greece finally blink? Greece’s creditors have made it clear that the ball is firmly in its court to make the concessionsneeded to reach a last-minute agreement. But even if Greece finally blinks, the stop-gap deal that... 12th June 2015 · 1 min read
Europe Economics Update Can time save Greece? Greece’s latest proposals to its creditors reportedly include plans to cover its financing needs until March next year. But with its economic and fiscal position more likely to worsen than improve in... 11th June 2015 · 1 min read
Europe Economics Update Can Greece leave the euro without also leaving the EU? Whether Greece exits the euro, and whether it can leave the single currency while remaining a member of the European Union (EU), will depend on economic, market and political realities rather than... 10th June 2015 · 1 min read
Europe Economics Update Iceland’s Sedlabanki begins hiking cycle Iceland’s central bank raised its main interest rates by 50bp today, as expected, in what looks likely to be the beginning of a tightening cycle designed to counter strong domestic demand growth and... 10th June 2015 · 1 min read
Nordic & Swiss Economics Update Iceland’s Sedlabanki begins hiking cycle Iceland’s central bank raised its main interest rates by 50bp today, as expected, in what looks likely to be the beginning of a tightening cycle designed to counter strong domestic demand growth and... 10th June 2015 · 1 min read
Europe Economics Update No California dreaming for Greece The repeated failure to agree on austerity measures together with threats of default and the prospect of IOUs have prompted comparisons between Greece’s situation and that in California in 2009. But... 9th June 2015 · 1 min read