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Spain, Italy, Germany Come to Deal after Euro Summit

Signaling a new direction in Europe’s efforts to stem the sovereign debt crisis, Germany, Spain, Italy, and other euro zone member states reached a deal to recapitalize Spanish banks with …

Europe’s Tightening Window of Opportunity

Joining the growing number of high profile warnings on the future of the European and world economies, World Bank researchers gravely take note of the euro zone’s eroding gross domestic …

Romney Electioneering Abroad at Odds with Trending Approach in Europe

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 …

Credit Ratings for Seven German Banks Downgraded

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 Growth Compact

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 …

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The Politics of Central Banking

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.

Germany’s Softening Stance

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?

The Exit Strategy

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 …

The ‘Good’ Week

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.

Buying Time, Building Firewalls

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.

Italian Lessons for Bernanke

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.

The Firewall

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.