Posted on Monday, November 2nd, 2009
By the Center for Geoeconomic Studies
The greatest challenge of European monetary union is devising a single monetary policy for a large grouping of countries facing divergent economic conditions. As these charts show, this challenge has been thrust to the fore since 2008, as eurozone employment conditions have diverged dramatically across member countries. Whereas the effectiveness of independent monetary policy as a tool for managing employment in smaller open economies is much debated among economists, the political challenge facing the European Central Bank in having to justify its policy decisions under current conditions is clear.
Read the rest of this entry »
Posted in 2008/9 Downturn, Central Banks, Europe | 0 Comments »
Posted on Tuesday, May 19th, 2009
By the Center for Geoeconomic Studies
World trade has contracted sharply as global demand has collapsed. U.S., European, and Chinese demand for world goods dried up in the last quarter of 2008 and first quarter of 2009. But optimism is growing that recession may be nearing a bottom. Will there be signs of “green shoots” in trade as well?
Read the rest of this entry »
Posted in 2008/9 Downturn, China, Europe, Trade, U.S. | 1 Comment »
Posted on Tuesday, March 3rd, 2009
By the Center for Geoeconomic Studies
Many Eastern European countries have a strong need for external financing. Negative current accounts and dangerously high levels of short-term debt are raising fears of financial instability. EU leaders on March 1st rejected calls for a $229 billion rescue fund for struggling economies in the east. Instead of a single plan for the region, the EU will be taking a case-by-case approach. The following articles discuss the problems facing Eastern Europe.
Read the rest of this entry »
Posted in 2008/9 Downturn, Capital Flows, Emerging, Europe | 0 Comments »
Posted on Monday, January 12th, 2009
By the Center for Geoeconomic Studies
In what Russia claims to be a purely commercial dispute, Gazprom cut off gas to Ukraine, disrupting supplies across Europe. However, some suggest that Russia’s real aim is to exploit European dependence on Russian gas (see chart) in order to divide Europe and undermine its pro-Western neighbor. The following articles discuss the geopolitical implications of Europe’s dependence on Russian gas.
Read the rest of this entry »
Posted in Commodities/Oil, Europe | 0 Comments »
Posted on Monday, October 13th, 2008
By the Center for Geoeconomic Studies
The U.S. has left Russia to bail out Iceland with a $5.5 billion loan, even though the U.S. economy is over 11 times the size of Russia’s. Is Iceland really of no strategic interest, despite speculation that Moscow hopes to gain leverage over Iceland, which could use its NATO membership to veto the accession of Ukraine or Georgia? Or does the Iceland story show that a country with petrodollars will use its currency reserves as a foreign policy tool?
Read the rest of this entry »
Posted in 2008/9 Downturn, Europe | 0 Comments »
