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Posts Tagged ‘interim assessment’

Leaks in the Dam?

March 28, 2013 1 comment

Interesting things happened this morning. I assisted to one of the presentations of the OECD interim assessment. There is nothing very new in the assessment, that concerning the eurozone, can be summarized as follows

  • The outlook remains negative (while the rest of the OECD countries are doing better)
  • There is still room for monetary accommodation
  • This monetary accommodation may not benefit the countries that need it more, because the transmission mechanism of monetary policy is still not fully working
  • The Cyprus incident shows that there is a desperate (this I added) need of a fully fledged banking union
  • EMU countries need to continue on the path of fiscal stabilization, even if automatic stabilizers should be allowed to fully play their role, even at the price of missing nominal targets Read more