A review of euro area bank deleveraging

Since 2008, Bank delevering has been on of the key drivers of the euro areas poor economic performance and its vulnerability to recurrent financial crises. Barclays Cross Asset Research nicely summarized and discussed its main drivers, whose impact is widely seen as most intense in 2012 and maybe 2013. ECB and IMF research suggests that […]
History of public debt reduction

In its October 2012 World Economic Outlook the IMF presented a 135-year study on public debt reduction strategies. It points out that debt stocks of over 100% of GDP have not been uncommon and do not normally lead to restructuring. Indeed, in the developed world out of 26 episodes only 3 ended in default (Germany and Greece). Successful debt-reduction […]