Europe

When do we decide that Europe must restructure much of its debt? – Michael Pettis

25 February 2015

By Michael Pettis · February 25, 2015 · Balance sheet fragility It is hard to watch the Greek drama unfold without a sense of foreboding. If it is possible for the Greek economy partially to revive in spite of its tremendous debt burden, with a lot of hard work and even more good luck we can [read more]

The Great Rebalancing – Michael Pettis

22 November 2014

Michael Pettis has gained a reputation for his forthright articles on the Chinese economy and financial markets, which he publishes in his blog http://blog.mpettis.com (some of which are reproduced on The World in Crisis, with his kind permission) and in international media like The Wall Street [read more]

China, Europe, and optimal currency zones – Michael Pettis

5 November 2014

I typically think of four main factors that determine whether or not an economy can function efficiently as a single currency or economic zone. They primarily determine the level of adjustments costs and how these costs are to be shared, so that regions more able to bear the costs absorb a larger [read more]