Europe Economics Update NAMA unlikely to solve Ireland’s bank problems The Irish Government’s plans to set up a “bad bank” should eventually help to reduce the uncertainty surrounding the size of banks’ losses. But the sheer scale of the problems in the banking sector... 31st July 2009 · 1 min read
UK Economics Update Bank privatisation won’t prevent fiscal tightening Recent speculation that the Government may soon look to sell off its shares in some or all of the nationalised banks has raised the question of whether the proceeds from such sales might reduce the... 29th July 2009 · 1 min read
Europe Economics Update Euro-zone Monetary Indicators Monitor (Jul.) The latest euro-zone money figures revealed that lending growth continues to slow. Of course, other things, equal, the ECB’s recent 12-month liquidity injection should help to boost bank lending in... 27th July 2009 · 1 min read
UK Economics Update Monetary Indicators Monitor (Jul.) The broad monetary aggregates are still showing little sign of responding to the Bank of England’s quantitative easing (QE) programme of asset purchases. We therefore continue to doubt that the QE... 20th July 2009 · 1 min read
Asia Economics Update Hot capital returns to China, raising inflation risks further The revival of confidence in China’s prospects appears to be drawing large amounts of speculative capital back into the economy, swelling the money supply and further raising inflation risks. Much of... 15th July 2009 · 1 min read
China Economics Update Hot capital returns to China, raising inflation risks further The revival of confidence in China’s prospects appears to be drawing large amounts of speculative capital back into the economy, swelling the money supply and further raising inflation risks. Much of... 15th July 2009 · 1 min read
Europe Economics Update Italian banks – weathering the storm better than most Italian banks have so far coped with the financial crisis better than most of their European peers. While this has not prevented a slowdown in lending, the problems in the supply of credit seem... 2nd July 2009 · 1 min read
Europe Economics Update Euro-zone Monetary Indicators Monitor (Jun.) The latest euro-zone money and credit figures revealed that, after having flattened off for some time, the monetary base increased again. The hope is that banks will feel encouraged to lend. But there... 30th June 2009 · 1 min read
UK Economics Update Financial Stability Report highlights constraints on bank lending The Bank of England’s latest Financial Stability Report (FSR) supports our view that bank lending growth will remain sluggish for a prolonged period, thus constraining the likely recovery in the... 26th June 2009 · 1 min read
UK Economics Update Monetary Indicators Monitor (Jun.). The latest monetary indicators confirm that the Bank of England’s asset purchases under its quantitative easing (QE) programme are providing some boost to the money holdings of the non-bank sector... 18th June 2009 · 1 min read
Europe Economics Update Will the Spanish bank rescue package be enough? The announcement by the Spanish Government that it plans to set up a fund to provide capital to the ailing banking sector is certainly good news. But on its own, it will not be enough to prevent the... 16th June 2009 · 1 min read
Europe Economics Update Euro-zone bank losses: halfway through? In its latest Financial Stability Review, published yesterday afternoon, the ECB has taken a less gloomy view on the potential losses that euro-zone banks still have to face relative to a previous IMF... 16th June 2009 · 1 min read
Nordic & Swiss Economics Update The Baltics remain a weight on Sweden’s shoulders Today’s announcement that the Swedish Riksbank is to borrow €3bn from the ECB confirms that, while the green shoots of recovery may be starting to emerge in parts of the global economy, the Baltic... 10th June 2009 · 1 min read
