MarketLine Blog

Posts tagged to Macroeconomics

Uncertainty over political events trumps fundamentals as markets fall

MarketLine

On Thursday June 23, 2016 the UK went to the polls to decide on its future as a member of the European Union (EU). By a small margin, the country opted to leave and despite the fact that no steps to enact Article 50 have yet been taken by Theresa May and her government, speculation about an imminent implosion of the British economy has been rife, damaging the value of the Pound and serving as a rather convenient scapegoat for everything from companies’ poor performance to increased prices, to political… Read more

Greece – Another Case of Expansionary Austerity Failure

MarketLine

The public austerity program forced upon the Greek population by the European Commission, the European Central Bank, and the International Monetary Fund (Troika) has depressed the economy instead of leading to an economic expansion, under the mantra of “expansionary austerity” policies. Five years of austerity involved drastic reductions in public expenditure, public sector redundancies and tax increases in the context of the worst global contraction of more than 60 years. As the Greek Prime Minister, Yanis Varoufakis, explained in a recent article published on the Project Syndicate website, the hard-line… Read more