Greece: from a eurozone problem to a ‘critical moment’ for the European Union

A lot has happened in the Eurozone’s Greek debt saga over the last couple of weeks; yet little has been achieved depending on which way you look at it.  The Greek Prime Minister, Alexis Tsipras, walked away from a near-fruition deal with Eurozone creditors last week that would have unlocked desperately-needed bailout funds. His unexpected […]

Why the ECB is unlikely to repeat ‘whatever it takes’ success

Last week, ECB President, Mario Draghi, dug deeper into the central bank’s war-chest in what appears to be the start of a new battle in the war against falling eurozone inflation. In a widely anticipated move he came close to – but stopped short of – announcing a full-fledged asset-purchase programme. Nevertheless, his newly-revealed arsenal […]

Letter: the lesson of the crisis was mispricing of risk

My letter-to-the-editor in the Financial Times (30 May, 2014) in response to Martin Wolf’s article suggesting that on what policymaker can do to reduce the “crisis-prone nature” of the capitalist financial system  (“Disarm our doomsday machine“, May 27). I argued that by focusing on Timothy Geithner’s recent book, “Stress test: reflections on financial crises”, Mr Wolf ignores the wider realities – and therefore future […]

Dear Basel, don’t be the last to learn the real lesson of the financial crisis

Summary In the aftermath of the Global Financial Crisis, there is little disagreement that the bank regulatory framework, Basel, failed. Numerous explanations have been put forward for this. The most widely accepted being that banks held too little ‘core’ or equity capital that could have absorbed losses. As a result, governments (read: taxpayers) stood as […]

Why easier monetary policy alone will not help the eurozone

Mario Draghi, President of the European Central Bank (ECB), rightfully deserves credit as the eurozone’s saviour. I would argue – and few would disagree – that his pledge to “do whatever it takes”, during the bloc’s darkest hours, saved the monetary union from ruin. Despite political wrangling over bailouts and debt restructuring, today, the eurozone […]

Letter: US-style banking ‘fix’ could harm eurozone

My letter-to-the-editor in the Financial Times (26 September, 2012) in response to an article by Philipp Hildebrand and Lee Sachs, suggesting that Europe could replicate the US experience (“The eurozone should fix its banks in the US way”, in recapitalising its banks; and ensuring a return to normal bank-lending. I argued that their advice ignored the essence of […]

Letter: why a tax on banks’ liabilities is unlikely to be helpful

Last month, in a Financial Times article, Mark Roe and Michael Tröge suggested that – in their attempt to make the financial system safer – governments should target banks’ liabilities rather than assets with a tax (“How to use a bank tax to make the financial system safer”, March 25). In a letter-to-the-editor (in response to this article) I shared […]