Daily Archives: November 14, 2011

Robin Harding

William Cline and John Williamson of the Peterson Institute have updated their estimates of ‘fundamental equilibrium exchange rates’: an exceptionally valuable cheat sheet for working out which currencies are over and under valued. (In fact they have not updated the FEERs, just their estimates of over and under valuation). 

Ralph Atkins

When  the history of the eurozone crisis is written, will July be seen as the moment when politicians really got it wrong? That would probably be the conclusion if the European Central Bank was writing the book. At a eurozone summit in July, Berlin secured agreement on a “private sector involvement”  in Greece’s bail-out – despite warnings from the ECB that it would send a terrible signal to investors elsewhere in the eurozone.

Jens Weidmann, Bundesbank president, was surprisingly blunt about the impact in his interview with the Financial Times.