A victory for Marine Le Pen in France could spell the end of the European Union As the Brexit Bill’s passage through Parliament in the coming weeks appears a foregone conclusion, the UK’s timeline for invoking Article 50 has become clearer – but what remains unclear is the extent to which Brexit is mobilising voters in other EU member states. Indeed, from an economic standpoint, the UK’s inconsequential post-referendum performance poses a [...]
The Eurozone is not likely to survive its own Japanese-style lost decade BEFORE the fiscal and monetary stimulus of “Abenomics”, Japan was afflicted with a chronic economic sickness. Crippled by excess private sector savings, it fell into deflation in the 1990s, despite very low nominal interest rates. Today, it is often suggested that the Eurozone is experiencing a similar malaise. Prior to the autumn, the leaders of [...]
Asset price distortion: Central banks’ new philosophy comes with old risks PRIOR to the financial crisis, life was relatively straightforward for central bankers. They favoured opacity over their future actions, using the theoretical argument that transparency was a threat to credibility. And they refused to control asset prices for a number of reasons – the most compelling of which was the threat of moral hazard. Yet [...]
