Myths and facts of the Euro crisis part 4 – how to save the Euro – an analysis by João Madeira

As shown in the previous text the run on bank deposits and sovereign debt of periphery countries justified the need for an intervention to change the negative expectations in debt markets and to help interest rates converge to the good equilibrium (governments pay lower interest rates and repay their debts). The creation of the EFSF […]

Myths and facts of the Euro crisis part 3 – capital flight and financial instability in the Eurozone – an analysis by João Madeira

My previous texts seem to suggest that the Euro is likely not the main cause for the problems several European countries currently face. If not the Euro, then what is the origin? The cause must be common not just to the periphery countries of the Euro but also to those other countries which have been […]

Myths and facts of the Euro crisis part 2 – labour regulation and unemployment – an analysis by João Madeira

In Anglo-Saxon countries the Euro seems to be seen in a very negative way. Many look at the Euro as an institution which reduced the vibrancy of the economies that adopted it. Table 1 below dispels this idea. Yes, it is true that until the Great Recession the UK, Iceland and USA grew more than […]

The Alternative Vote explained

With the Alternative Vote referendum fast approaching, here’s an attempt to demystify the process from my guest blogger, Professor John Maloney, an economics colleague and election expert. Have you had the official leaflet describing the alternative vote system? In one way it’s doing a good job for first-past-the post, by making the counting procedure under […]

The outlook for 2011

It seems a shame to start off my new blog on a gloomy note. But it makes sense to open with the outlook for 2011. And there’s no way round it, I’m afraid. This year is not going to be much fun for most of us. The problem that we face is an unpleasant combination […]