European Central Bank

Who is responsible for the eurozone crisis? The simple answer: Germany

The wrong economic model of the crisis led Germany to insist on tighter fiscal rules which created a second eurozone recession. German influence on the European Central Bank also led it to delay QE for six years, and raise rates during 2011. Finally we saw how the actions taken much earlier by German employers and employees helped to protect Germany from the consequences of all this. 

Hamish McRae: Working out how to quit QE will be new boy Carney’s

Mark Carney begins work at the Bank of England tomorrow. There is a great temptation, as you can see from the stuff that is being written about the appointment, to see this as leading to a significant shift in policy – something that will enable the UK economy to reach “escape velocity”. The fact that the Bank has been given additional responsibilities for regulating the banking system, making the job on paper at least more powerful, increases the temptation.

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Hamish McRae: Britain will find it very difficult to detach itself

It is, for our politicians at least, a long weekend for reflection. There is the specific matter of the gains by the UK Independence Party in the elections last Thursday, a sharp enough advance to affect the policies of all parties towards Europe in the months ahead.