Is Default of Slovakia Realistic?
The current social package worth more than a billion euro has definitively confirmed that Slovak government is going kamikaze in the area of public finances. After all, the money is “lying on the pavement”.
European Central Bank
Fed to Raise Interest Rates, Has No Choice
The US Federal Reserve System (Fed) has announced that it will raise interest rates. They have been at zero since the start of the pandemic and since the last recession in 2009, they hit their highest level in 2019. But even in 2019, they were very low, with an effective rate of about 2.5%.
Expensive Polystyrene and ECB
Polystyrene, wood, reinforcement steel, and other materials have not only become expensive, but their lack in warehouses indicates that the increase of prices will continue. It is similar with notebooks, bicycles, or maize.
Estcoin: Estonia’s New Part of Digital Identity
Estonia could become the first country in the world with virtual currency, the Estcoin. The problem is that the country’s official currency is Euro and membership in the Eurozone does not allow having any other parallel cryptocurrency.
The World Is Upside Down, Interest Rates Are Negative
We can find examples of negative interest rates in countries throughout history. But these are geographically or time-isolated cases. However, today we live in a world where more and more things are turning upside down. And one of such things is the fact that negative interest rates are shifting from a deviation to a norm (for the time being only within the financial system).
Does Lithuania Have Any Questions to ECB?
The chairman of the Central Bank of Lithuania will become a member the Governing Council of the European Central Bank, which is responsible for monetary policy for the euro area. Thus, if Lithuania wants to properly represent it‘s interests, it has to join the debate concerning decisions of the ECB.
Could Deflation Reduce Consumption? Microeconomic Evidence
While the European Central Bank, governments and many economists complain about the danger of deflation a currently published microeconomic analysis from the famous Kiel Institute for the World Economy tells a different story.
Final Exams in the European Banking System
Except for few unfortunate ones, high schoolers have already finished their key exams. European banks have not.
Will the Euro Adoption Trigger Price Hikes?
Contrary to what Lithuania’s prime minister claims, discussions on euro introduction are far from over. They might be over for those who have had the task of convincing Lithuanians about the benefits of having the euro.
European Banking Union
European banking union is the most important regulatory project in the European Union (EU).
