Determining the economic policy approach of the United States for the next four years, Americans have the opportunity in November to remain with President Barack Obama or switch to Republican …
On Wednesday, the international agency Moody’s downgraded the credit rating for seven German financial institutions. Commerzbank AG, Germany’s second largest bank, stands among the downgraded financial institutions. Some experts contend …
The President of the European Central Bank (ECB) was in heavily fortified Barcelona, Spain today. I believe it is the first time in the history of the ECB that it …
According to AICGS Senior Fellow Alexander Privitera, both the Federal Reserve (FED) and the European Central Bank (ECB) are increasingly becoming political bodies, forced by growing public scrutiny to build their own constituencies.
Despite a week dominated by negative headlines about the Chinese economy and rising gas prices, interest rates for sovereign bonds from Spain and Italy remain quite low. Is the worst of the crisis really over or are investors just lulled by the massive intervention from the ECB?
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At the recent AICGS conference “Rising Tensions between the European Central Bank and the Bundesbank,” AICGS Senior Fellow Alexander Privitera and David Marsh, Co-Chairman of the Official Monetary and Financial …
In spite of some cautionary words from Chairman of the Federal Reserve Ben Bernanke on the economic recovery, this past week was a relatively good one for the financial markets. However, according to AICGS Senior Fellow Alexander Privitera, the mood could soon be changing.
European leaders have finally agreed to a deal that will send the next tranche of financial aid to embattled Greece in exchange for further austerity measures in Athens. According to Senior Fellow Alexander Privitera, while the deal will help Greece stay afloat in the short term, it increasingly signals that politicians in Europe may simply be buying time for an eventual Greek default.
Looking at Europe, FED Chairman Ben Bernanke has drawn some hard lessons that the U.S should be aware of. In fact, with the most acute phase of the Euro crisis somewhat abating, Bernanke feels compelled to issue a stern warning to U.S. politicians not to make the same mistakes made by some European countries, which have made them vulnerable to fiscal crisis. What happened to Europe could very well happen to the US, and more suddenly and sooner than many today think is possible.
In a recent speech, International Monetary Fund Managing Director Christine Lagarde once again reminded Germany of the consequences of not acting on the current crisis. According to Alexander Privitera, while German officials were quick to shrug off the latest comments, Berlin may be more flexible in its options to help the euro than many believe.
In this report, Oliver Wieck proposes a new impetus to overcome the ongoing deadlock in the WTO Doha negotiations. German industry has a huge interest in a strong multilateral trading system with bilateral free trade agreements offering additional market opening. The recent initiative between the EU and the USA to intensify the economic ties could not only boost genuine transatlantic market opening but should also set a clear signal to the new economic powers like China, Brasil and India to join the “Club of Free Traders”.
In his analysis entitled Splendid Isolation, Alexander Privitera explains how Germany is becoming increasingly isolated from the rest of Europe in the fight to fix the euro. With recent bond auctions in Italy and Spain providing some optimism for the euro zone, Germany may be quick to herald the success of German-style austerity in Europe. However, according to Mr. Privitera, the plan to save the euro is actually becoming less German.