 |
 |
 |
 |
 |
 |
 |
In RealTime posts, PIIE senior staff and colleagues discuss the fast-moving economic news, financial developments, and public policy choices confronting the United States and the world.
It is no surprise that the results of the Italian political election have unsettled the markets and stirred fears outside the country about the potentially damaging impact on Europe, the United States, and the global economy. The markets appear to be mostly concerned by the absence of a working majority in the parliament, increasing the [...]
The announcement by Italy’s technocrat prime minister, Mario Monti, of his intention to resign after parliament’s approval of the 2013 budget law came as a surprise for most observers. Premier Monti attributed his decision to the withdrawal of crucial support by PDL (People of Freedom Party), which had supported his technocrat government for the past [...]
The Barclays scandal over manipulation of the LIBOR (an acronym which stands for London InterBank Offered Rate) has put this important monetary indicator in the spotlight in recent days. The LIBOR rate may not be well known to people outside the financial sector, but it affects most people’s lives directly or indirectly, underpinning hundreds of [...]
The issue of whether and how much to increase the lending power of the International Monetary Fund (IMF) to reinforce its ability to cope with the euro area crisis is among the most debated at the IMF-World Bank meetings this week. The pledges have reached $320 billion, which falls short the target of $400 billion [...]
Note: This post is based on an author’s intervention at the International Conference of RCIE, KIET, and APEA on China and the World Economy, Seattle, March 16, 2012. The progress of China towards financial integration and the internationalization of renminbi is a matter of great importance. While the world economy remains financially unstable, accessing the [...]
Since December, Premier Mario Monti of Italy has taken several steps that appear to have improved market confidence in the country’s ability to repay its debt, thereby raising hopes that Italy can recover from its financial and economic crisis. Parliamentary approval of an additional public finance adjustment package for 2012–14 in December (the third [...]
I had the chance to meet Mike Mussa personally when I was working at the International Monetary Fund as senior advisor to the Executive Director from Italy in the mid-nineties. His periodic presentations on the world monetary and exchange rate outlook at the board meetings were the most thrilling and intellectually exciting event on the [...]
If one is to judge by the Italian public finance data released on December 10 by the National Institute for Statistics (ISTAT), Italy is on the path to adjustment. In the third quarter of 2011 the general government net borrowing has been 2.7 percent of GDP, down from 3.5 percent in the corresponding quarter of [...]
The maiden speech of the new Italian prime minister, Mario Monti, has set out a comprehensive reform strategy to address the challenges facing his country. Monti has made clear that certain measures must be implemented as quickly as possible to create a favorable environment for growth, pursue a balanced budget, implement structural measures and distribute [...]
Yields on the benchmark 10-year Italian government bonds surged to 7.4 percent yesterday, the highest level since the adoption of the euro more than 10 years ago. The situation has unsettled markets around the world, where investors are noting that similar sovereign debt rate levels drove Greece, Ireland, and Portugal to seek bailouts. The question [...]