Daily Archives: June 4, 2014

The European Central Bank clearly will announce some package of expansionary measures on Thursday – as well it should, given sustained below target inflation in the eurozone, and forecasts of further falls. The most important and promising policy it will announce is the one with the longest lead time: fostering a market in securitised lending in Europe, primarily for loans to small and medium-sized enterprises, through direct purchases of such asset-backed securities. This is absolutely the right initiative for the ECB to take because it is not only going to be effective (unlike limited interest rate cuts or very long-term refinancing of bank loans, also likely to be announced), but will address the right problems and do so with lasting structural benefits. Continue reading »

World leaders gather in Warsaw today to celebrate Poland’s return to democracy 25 years ago on this day, and the country’s astounding economic and political development since then. Today Poland is a prosperous, dynamic and democratic society. Yet the leaders will make the most of their visit if they understand the deeper lessons of Poland’s remarkable recovery after 1989 and apply those lessons elsewhere, including vis-à-vis Ukraine and Russia.

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