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 [...]

Myths and facts of the Euro crisis part 1 – an analysis by João Madeira

The Euro crisis is maybe the most important economic question of the moment. Despite being a highly debated matter, I think that the discussion hasn’t always been the best for it has been too coloured by political sympathies and national pride. In my view, the facts should be the basis of the debate. After all, [...]

The banking mess

Three-and-a-half years have passed since the banking run on Northern Rock in the UK, two-and-a-half since the collapse of Lehman Brothers in the US. And we’re still waiting for the government’s decision about what to do with the banks. There’s been some tinkering. The Financial Services Authority, which bore more than its fair share of [...]

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 [...]