Death Star Economics



Thursday, #34: ahead of THE summit

As widely expected, the ECB has cut its interest rate to the record low of 1%, as Mario Draghi just announced in Brussels.

The Bank of England also just announced that it is holding its interest rate of 0.5% and its quantitative easing package worth £275bn steady. No changes whatsoever. read article

The centre-right EPP, European People’s Party, meets in Marseille today to assemble another game plan, with Angela Merkel, as ze hesitant hero, Mariano Rajoy as the new girl in class and Nicolas Sarkozy as himself.

The IMF is joining the new-fund-solves-all parade and will raise another €600bn to help those in need.

Meanwhile, Josef AckermannCEO of Deutsche Bank and one of the most hated people in Germany, received a letter bomb in the bank’s headquarters in Frankfurt yesterday. The return address was that of Mario Draghi,president of the European Central Bank. Kind of funny, but also kind of not the right way to solve anything.

The guys from NPR’s Planet Money asked two economists about their thoughts on the Euro-mistake-or-not. Unfortunately, they are not as much pro and con as one should hope, but they still make for a nice round-up before tomorrow’s uber summit. Read Desmond Lachman’s take on it here, and Jacob Funk Kirkegaard’s reponse here.

More prep for tomorrow for those who really really really want to get into detail: have a look at Protocol 12 – soon in a theatre near you, the part of the EU treaty that will be revised into all possible directions tomorrow. read article

So long.


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