The Euro started Jan 1999 EMU involves Replacement of National currencies by the EURO Same Monetary Policy – Since “One Money” implies uniform interest rates Exchange Rates within the Euro area will cease to exist By mid 2002 national currencies will cease to be legal tender Pre Launch Blues Expectations about Inflation helped reduce actual …
Reasons for the economic decline of Italy.
One feature of the recent crisis has been the degree to which governments underestimated the forecast rise in government borrowing. The IMF produced a report which looked at forecast debt from 2007, and what debt actually was three years later. In ten selected countries, the increase in the gross debt ratio 31.8 2007 forecast for …
According to the National Institute for Economic and Social Research (Niesr), fiscal consolidation in the UK is likely to increase the UK’s debt burden. Or to put it in layman’s terms there will be ‘pain, but no gain’ They model the impact of fiscal consolidation in both ‘normal’ times (scenario 1) and in the current …
Why have countries in the Eurozone faced greater difficulties in promoting economic recovery? How does a country with its own currency find greater flexibility in overcoming a recession? 1. Impact of Currency and Bond Yields A striking feature of recent years is that countries in the Eurozone have been significantly more susceptible to rising bond …
Following on from previous posts – How much has government spending been cut – | How was budget deficit cut by 25%?. It will be useful to republish some data from Mainly Macro – on a post UK austerity and some facts UK Cyclically adjusted primary deficit 2010 2011 2012 2013 IMF 2 -6.1 -3.9 …
Readers Question: Why is it, that some countries e.g USA, UK, Japan etc can electronically create money whereas India, Germany, Euro etc have to work, trade and manufacture exports and growth to keep pace with the above mentioned ? Any country could electronically create money if they wanted to. To summarise, the only good time …
A helicopter money drop is a form of monetary policy in which a Central Bank prints money and distributes it directly to households/consumers. The aim of helicopter money is to boost nominal GDP, overcome deflation and help reduce unemployment. In normal circumstances, printing money will be inflationary. Economists usually suggest helicopter money in a liquidity …