The ECB’s June monthly bulletin has an interesting box on pages 94-95 on “Past Experiences with Sustaining Large Primary Budget Surpluses” (defined as sustained episodes with cyclically-adjusted primary budget surpluses of at least 4.5 percent of GDP for 5 years or more). The bulletin is here.
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The FT magazine has an illuminating article on how the FDIC can efficiently close a failing bank: you can read it here.
The pre-2007 Irishman abroad in Europe had a little swagger to him. He thought his economy was a Tiger. When abroad in Europe, he spent like crazy, and generally annoyed his European counterparts with his brash ways. (Of course I’m not thinking of anyone in particular). The reverse is happening at the moment. We’re humble little chappies. My French and German friends are sending me emails with pictures of the Book of Kells saying ‘please take care of our investment’ and ‘are you enjoying your bailout?’ and ‘we’re still waiting for the thank you card’.
They’ll be waiting a while longer. When I say our European friends should be thanking us, they assume it’s a throwback to the hubris of pre-2007 Ireland or something to do with keeping eyes off the balance sheets of German and French banks. It’s not, and here’s just one reason why.
Jeff Sachs shows how a Greek default can be avoided through a different European approach to funding a troubled sovereign in this FT article.
You can catch up with the research conducted by Central Bank staff by reading its latest research bulletin – available here.