Europe Economics Update Who will be the next Cyprus? Cyprus has shown that even the smallest members of the euro-zone can rock the single currency area. Slovenia is probably the next country most likely to be forced into a bailout programme, but Malta... 27th March 2013 · 1 min read
US Economics Update US net debt to foreigners still manageable Despite endless claims that the US is hopelessly indebted to foreigners, which will eventually lead to a collapse in the dollar and/or rampant inflation, its net external liabilities are actually... 26th March 2013 · 1 min read
Global Markets Update Too soon to forget about Cyprus The events in Cyprus provide another very visible – albeit extreme – illustration of the financial problems which are holding back the global recovery. Indeed, even though the Cypriot economy itself... 26th March 2013 · 1 min read
Europe Economics Update Capital controls: vital stopgap or dangerous precedent? While capital controls could be crucial to preventing the collapse of the Cypriot banking system in the coming weeks, their persistence or more widespread use would threaten to undermine the basic... 26th March 2013 · 1 min read
Japan Economics Update Positive wealth effects from equity gains still limited The latest Flow of Funds report, published today by the Bank of Japan, confirms that the surge in equity prices on the back of the “Abe trade” has boosted the value of household assets, but also that... 25th March 2013 · 1 min read
Europe Economics Update Cyprus: Disaster averted, but with lasting effects While the Cypriot banking package has averted imminent disaster, the episode will have damaging effects on Cyprus’s economy and has raised new questions over the stability of the currency union. 25th March 2013 · 1 min read
Latin America Economics Update Limits to credit-driven growth come into focus Latin America’s recent lending boom continues to deflate, strengthening our belief that credit can’t be as big a driver of growth going forward as it has been in recent years. With household balance... 20th March 2013 · 1 min read
Europe Economics Update What next for Cyprus? The Cypriot Parliament’s overwhelming rejection of the proposed levy on bank deposits adds to the uncertainty surrounding the future of Cyprus and increases the risk of the country eventually exiting... 20th March 2013 · 1 min read
China Economics Update The view from the ground – Q1 2013 Confidence is rising, but business leaders in China are less upbeat about conditions for their own firms than they are about the wider economy. This suggests that sentiment may be running ahead of... 19th March 2013 · 1 min read
US Economics Update Monetary Indicators Monitor (Feb.) The growth rates of broad money, including our own measure of M3, have slowed recently, even as the Fed has expanded its quantitative easing. We suspect this decline reflects a fall in the... 19th March 2013 · 1 min read
Global Markets Update Will there be more contagion from the crisis in Cyprus? The negative reaction in Europe’s financial markets to the decision to "bail in" depositors in Cyprus has been fairly muted so far. Admittedly, the euro fell below $1.30 against the dollar on Monday... 18th March 2013 · 1 min read
Emerging Europe Economics Update What does the Cypriot bail-out deal mean for Russia? Russia’s financial markets have taken fright this morning following the announcement of details of the Cypriot bail-out, which looks set to hit Russian deposits there hard. But despite the fact that... 18th March 2013 · 1 min read
Europe Economics Update Is Cyprus really a special case? The plan to impose losses on Cypriot bank depositors has potentially serious implications for financial stability in the euro-zone as a whole. Cyprus is arguably a special case, but given remaining... 18th March 2013 · 1 min read
UK Economics Focus Time to tackle the pound? With a review of the monetary framework looking likely, policymakers should consider giving the pound a more explicit role in policy. Committing to a lower pound would not be without its costs; in the... 14th March 2013 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Feb.) High hopes are resting on the ability of the Bank of Japan’s new leadership to revitalise the economy. A look at the latest monetary aggregates underlines the challenges they face. 14th March 2013 · 1 min read
Nordic & Swiss Economics Focus Will Denmark remain the Nordic laggard? Denmark is finally dragging itself out of its long slump. Households have started to deleverage, exporters have become more competitive and banks are now stronger. But given that these adjustments... 12th March 2013 · 1 min read
