Greece’s economic situation is deteriorating rapidly and on March 31, the government failed to meet an initial deal with the EU and IMF, offering plans insufficient to address creditor concerns. In addition, the Greek government has declared that a large…
ECB: 1, Business in Europe: 0
Yesterday, the European Central Bank (ECB) announced its much-anticipated quantitative easing program. Business in Europe has anticipated this decision since ECB President Mario Draghi promised to do “whatever it takes” to keep the euro intact in 2012. However, FSG is…
Emerging Market View: What Our Analysts Are Reading
The European Central Bank (ECB) is ready to “step up the pressure” in its deflation battle, said ECB President Mario Draghi addressing the Euro Banking Congress in Frankfurt on Friday. According to the Wall Street Journal, ECB is ready to expand its…
25 European banks fail stress tests
Banking stress tests in Europe have a rocky history. While the tests conducted by the United States Federal Reserve in 2009 restored confidence in the financial sector, European tests have been undermined almost immediately by bank failures. Stress tests in…
Even Good Monetary Policy Cannot Solve Europe’s Problems
Mario Draghi, ECB President (Image: Mario Vedder/AP) After the European Central Bank (ECB) cut interest rates into negative territory in June, we asserted that central banks act when expectations miss to the downside. Once again, today was the rule and not…
ECB’s negative deposit rates will leave eurozone to muddle along
Central banks act when expectations miss to the downside; today was the rule and not the exception. The European Central Bank (ECB) cut interest rates, notably lowering the interest rate on the deposit facility into the negative territory of -0.10%. The…