Spanish Jitters Reveal Euro’s Fragility

Yields on 10-year Spanish government bonds have risen by 100 basis points since the beginning of March.  With attention now switching back to Spain, it seems the brief hope provided by the European Central Bank’s massive liquidity injections has proved to be a false dawn. Why has confidence evaporated so quickly?

read more

Could German Inflation Help the Euro Area to Rebalance?

Euro-area data have surprised on the upside in the opening weeks of 2012. This is particularly true in Germany, where there has been a strong bounce in key cyclical indicators and genuine signs of expansion. But could Germany be getting too much of a good thing?

read more

Archives by Month:

Archives by Subject: