Last week’s bond-stravaganza was very welcome and, for once, a relatively good news story. The effects of the return to the bond markets by Ireland can be seen below. In the figure below, country by country and relative one to the other, you’re looking at changes in indicative yields for 10 year bonds (Ireland actually has an 8 year bond, but let that pass) by European country. Green is bad on the horizontal, but good on the vertical, in terms of spread differential vs other countries (ht Eoin B for the clarification). Not much else to say really, except you should click on the image for a bigger and easier to read table.
I spent a few hours today revising and updating this paper, and was both astonished, and not surprised at all, to see the extent to which trust in the EU and its institutions collapsed in 2011. The figures below show the percentage of respondents in Eurobarometer surveys saying they trusted the institution in question, minus the percentage who said they didn’t trust it. The decline in 2011 is really quite dramatic. I am sure that the usual suspects will tell us that what Europe obviously needs is a better communications strategy. Personally, I think that less destructive economic policies would have a bigger impact.
Available here. Minor improvement in growth forecast for this year, offset by minor reduction in growth forecast for next year.
As always, the ‘signed articles’ are of special interest
- Cost Competitiveness and Export Performance of the Irish Economy by Derry O’Brien and John Scally
- Recent Trends in Irish Expenditure and Prices by Colin Bermingham
- Analysis of Recent Monetary Operations & TARGET2 Developments by Patrick Haran and Samuel Bailey
The NYT profiles PIMCO co-CEO Mohamed El-Erian here.
This article collects the views of some of the most active research economists – see here.
Eamon Quinn reports here.