The Eurozone will need a better functioning labor market to keep the monetary union Unemployment in the Eurozone is at 12%, and the dismal short-term activity and sentiment indicators point to a likely further rise. In the meantime, the unemployment rate in the US is on a downward trend (even if…

From Before Cyprus to After Dijsselbloem? The Eurogroup leader whose name starts with a D showed how to become a swearword from obscurity in a single day. But was he actually onto something important? A modest proposal. OK boys and girls, it is time to ask some tough questions. What should the…

Cypriot banks will not fully reopen any time soon. Not even next Tuesday. Capital controls are likely, and potentially not just in Cyprus. The simple morale of the story is that never ever keep money in a banking system/country which is broke…. The Cyprus story is changing fast, but there is…

“Banking union” is a backdoor to fiscal union. That is why it will not come any time soon. The Eurozone crisis is potentially worse than the Great Depression for peripheral countries (including Spain and Italy). Policymakers still underestimate the risks, to put it mildly.  The Eurozone crisis…