Last Updated: 19:57 GMT     Tuesday, 7 Jul. 2015 Archive About FAQ Careers Home
Banner: MacroDigest
   
    
Greece news live: Greeks have 'voted themselves out of the euro' as European leaders openly discuss managing a 'Grexit'
Isabelle Fraser / Telegraph
EU chief Dombrovskis says Grexit "cannot be excluded" ahead of day of emergency summits in Brussels
Related: Statesmanship and the Greek Crisis
Jeffrey D. Sachs / Project Syndicate
Greek Prime Minister Alexis Tsipras and German Chancellor Angela Merkel have the opportunity to go down in history as great European statesmen. Rapprochement between their two countries, combined with the promise of debt relief, will restore economic confidence and save Greece and the euro.
Related: Greece to offer new bailout proposal
FT
Tsakalotos intervention raises hopes of deal before Athens defaults on €3.5bn ECB bond payment
Related: Grexit remains unlikely, but time is against the Greek government
EUROPP
Eurozone finance ministers met on Tuesday to discuss the Greek debt crisis following the country's 'No' vote in its bailout referendum on 5 July. Lorenzo Codogno writes that while a Grexit remains unlikely, the risks have clearly increased since the referendum and the financial and economic situation in Greece may ...
Related: It’s time for Greece to Leave the Euro
Jochen Bittner / NY Times
The euro zone is only hurting itself by trying to keep Greece as a member.
Related: The Polls Were Bad in Greece. The Conventional Wisdom Was Worse.
Nate Silver / FiveThirtyEight
Coming on the heels of the U.K. general election, the Israeli general election, the Scottish referendum and the U.S. midterms, Sunday's Greek referendum looks like the latest in a series of bad outcomes for pre-election polls across the globe. While the last few polls before the vote showed "Oxi" ("no") ...
Related: From Grexit to Exitaly? Let's Stop This Madness
Biagio Bossone / EconoMonitor
If Berlin, Frankfurt and Bruxelles continue to say "no", there won't be alternatives to Grexit, and that's the end of the euro as we know it. At that point the euro architecture will have failed (in fact, it has already failed) and the very idea of Europe of Europe's founding ...
 
Germany's Power Polarizes Europe
WSJ
The Continent's most powerful country is grappling with its leadership role-and other nations are, too.
Related: Will Angela Merkel Save the European Ideal?
John Cassidy / The New Yorker
In any great political crisis, there comes a moment when great leadership is required-the sort of leadership that prioritizes the general good over sectional interests, and that shapes events rather than reacting to them. Following Sunday's referendum in Greece, the European debt crisis, which is ultimately a political crisis, has ...
Related: ECB says ELA provides only temporary liquidity
Gazzetta Del Sud
Rome, July 7 - The European Central Bank (ECB) said Tuesday that the objective of its Emergency Liquidity Assistance (ELA) is to "support solvent banks that are found to face temporary liquidity problems". In a document on its financial risk management program, which came one day after th...
Related: Queen Elizabeth in Germany: It is important to remember the dangers of a divided Europe
British Politics and Policy at LSE
The Queen recently gave a speech in Germany where she said that "division in Europe is dangerous". This remark met with controversy in the UK, where advocates of a Brexit accused the monarch of meddling in politics. Insofar as her speech contained any political message, writes David Shiels, it was ...
 
Reinvent the Export-Import Bank
Noah Smith / Bloomberg Views
Have it act like a venture capitalist.
Related: How crony capitalism is slowing global economic growth
James Pethokoukis / AEI
US productivity growth, at least as measured, has been in low gear for a decade. And especially so since the Great Recession, averaging just 0.6% annually from 2010 through 2014. We're aren't going to consistently hit 3% GDP growth, much less 4%, like that. [...] The post How crony capitalism ...
 
Fed Helped Swell Waves
WSJ
The Federal Reserve's bond purchases made mortgage refinancings abnormally profitable for banks. But all good things come to an end.
Related: IMF urges Fed to hold rates
Dow Jones newswires / Business Spectator
IMF claims central bank could stall US economy by raising interest rates this year.
Related: U.S. fed funds rate holds at 0.13 pct
Reuters
NEW YORK, July 7 (Reuters) - The U.S. federal funds rate , which banks charge each other to borrow excess reserves, averaged 0.13 percent for a fourth day on Monday, U.S. Federal Reserve data...
 
Strong pound continues to batter manufacturers as output falls
Szu Ping Chan / Telegraph
Budget tax breaks help oil producers but manufacturing continues to disappoint, official data show
Related: George Osborne's change to trading laws endangers small stores, say retailers
Sarah Butler / Guardian
Local grocery outlets say their livelihood will be threatened by chancellor's proposal to allow local authorities to decide on Sunday opening hours Independent retailers say George Osborne's plan to hand regulation of Sunday trading to individual towns and cities could put small local stores at risk. The Association of Convenience ...
Related: Why is George Osborne holding a lunch box? 20 budget questions answered | Hannah Jane Parkinson
Hannah Jane Parkinson / Guardian
I think we'll all have a few pressing questions for George Osborne tomorrow, but for now, allow me to tell you what budgets are all about You get what you pay for, and you get what you vote for. And that means the first Conservative-only budget in almost 20 years. ...
Related: Osborne fights calls to cut top tax rate
FT
Chancellor argues it would be insensitive at time of welfare cuts
 
Stock market intervention: China now, Hong Kong then
Gavyn Davies
© Getty Images The wild events in the Chinese domestic stock market in recent days have shown signs of broadening to other financial markets. Weakness in metal and oil prices, and in commodity currencies such as the Australian and New Zealand dollars, are normally reliable indicators that China is a ...
 
BRICS Trade Strategy: Time for a Rethink
Simon J Evenett / VoxEU
At a time when each of the BRICS' exports are falling and when only India is expected to see faster economic growth in 2015 and 2016, the 17th GTA Report argues that the trade strategy of the BRICS should be rethought.
Expand sublinks   Also:  Brookings
Related: The BRICS: Three Things to Know
Stewart M. Patrick / CFR
Brazil, Russia, India, China, and South Africa (known as the "BRICS") are forming multilateral bodies intended to reduce Western influence over the global financial system, explains CFR's Stewart Patrick.
Related: The BRICS Butterfly Effect and Bretton-Woods Reforms
The BRICS Post
An idea, which commenced, as a Goldman Sachs research project may soon become one of the most widely followed case studies in chaos theory.
 
Why Ukraine Deserves a Haircut
Erik Berglöf / Project Syndicate
The battle in Ukraine over the future of reform is far from won, but real progress has been made. The country's private creditors must now do their part and join the international community and the IMF in taking a haircut on their debts.
Related: Saudia Arabia Makes $10bn Investment In Russia
Gallagher / Francis Fukuyama
Is Saudi Arabia's new $10B investment in Russia window dressing, or something more?
 
Job growth not GDP growth matters for India
Rajiv Kumar / East Asia Forum
Author: Rajiv Kumar, CPR Extensive commentary on the latest Indian GDP growth numbers has been unable to clear prevailing confusion on whether the economy is in its recovery phase or not. It would be more useful to focus on the data that the ordinary Indian cares about: jobs growth and ...
Expand sublinks   Also:  Forbes
Related: India likely to sign US tax compliance law FATCA on Thursday
Times of India
India is likely to sign the inter-governmental pact for the US tax compliance law FATCA on Thursday, a move that will help it fight tax evasion.
Related: Role Reversal: India's Tech Titans Grab Talent From Silicon Valley
George Anders, Contributor / Forbes
Top tech talent isn't always moving from India to Silicon Valley. High-flying Indian companies such as Snapdeal are making the talent migration go the other way, by snapping up U.S. stars.
 
Indiana Jones, Beyoncé, And Saudi Oil Production
Matt Smith / Oil Price
Thirty-four years ago today, Indiana Jones was the number one movie at the box office with 'Raiders of The Lost Ark.' 1981 was also the year in which Beyoncé was born. These two reference points are just to highlight how long ago 1981 was (even if a swashbuckling Harrison Ford ...
Expand sublinks   Also:  Marc to Market | REN | FT
Related: Oil losses moderate after WTI falls more than 3%
CNBC
Oil fell Tuesday as China's stock market took another tumble and Greece moved closer to leaving the euro zone.
Related: Electric Vehicles Sometimes Create More Pollution than Gas-Fueled Cars
Jillian Kay Melchior / National Review
On the east coast, electric cars actually create more pollution than their gasoline-burning counterparts, a new study by the National Bureau of Economic Research finds.Policymakers have long assumed that cars run on electricity, not gasoline, are greener. But "rather than simply accepting the assertion of environmental benefits from electric vehicle ...
Related: Oil back in bear territory amid commodity rout
FT
 
Effects of income inequality on economic growth
Markus Brückner ... / VoxEU
The relationship between aggregate output and income inequality is central in macroeconomics. This column argues that greater income inequality raises the economic growth of poor countries and decreases the growth of high- and middle-income countries. Human capital accumulation is an important channel through which income inequality affects growth.
Related: Long Term Drivers of Economic Growth
Admin Tim / The Big Picture
My favorite quarterly chart book is out. These two charts caught my eye:   click for much larger charts   Source: JP Morgan
Related: Why growth in finance is a drag on the real economy
Stephen Cecchetti ... / VoxEU
A booming financial sector means economic growth. Or does it? This column presents new evidence showing that when the financial sector grows more quickly, productivity tends to grow disproportionately slower in industries with either lower asset tangibility or in industries with higher research and development intensity. It turns out that ...
 
Japanese Economic Index Dow Shows "Pause" in Economy
Alfonso Esparza / OANDA
Japan's key composite index of economic indicators fell in May following a rise in the previous month, data showed Monday, prompting the government to downgrade its assessment of the nation's economy for the first time in nine months. The index of coincident indicators, such as industrial output, retail sales and ...
Related: Japan: Women in the workforce
FT
A new law is designed to get more females into work but, argue critics, corporate Japan needs wholesale change
 
Please take our 3-minute survey!
Follow MacroDigest on Twitter  Like Us on Facebook
New
Japanese Economic Index Dow Shows "Pause" in Economy
OANDA
Stock market intervention: China now, Hong Kong then
Gavyn Davies
Greece news live: Greeks have 'voted themselves out of the euro' as European leaders openly discuss managing a 'Grexit'
Telegraph
Greece news live: EU's Dombrovskis says Grexit "cannot be excluded" as crucial meeting for deal starts
Telegraph
Greece news live: Greeks have 'voted themselves out of the euro' as European leaders openly discuss managing a 'Grexit'
Telegraph
It’s time for Greece to Leave the Euro
NY Times
"Truth Teller" Donald Trump Fudges the Facts about Chinese Currency Manipulation
EconoMonitor
Strong pound continues to batter manufacturers as output falls
Telegraph
Job growth not GDP growth matters for India
East Asia Forum
Effects of income inequality on economic growth
VoxEU
What's this?
Link: Centre for Macroeconomics
Link: Economic and Social Research Council
 
Last Updated: 19:57 GMT     Tuesday, 7 Jul. 2015 Archive About FAQ Home