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Articles by Desmond Lachman

No Free Lunch for the ECB Friday, July 25, 2014
The IMF is urging the ECB to implement massive quantitative easing, but such a course of action is unlikely to promote short-term economic growth and would ...
Europe's Energy Problem Friday, June 20, 2014
Developments in the Middle East and Ukraine show Europe needs to improve its energy policy or face serious economic consequences.
Europe in Denial Monday, June 9, 2014
Despite an electorate that is increasingly hostile to the European project and the risk that Europe could be drifting towards Japanese-style deflation, ...
Are the U.S. Dollar’s Days Really Numbered? Monday, May 19, 2014
The U.S. dollar will remain the world's reserve currency because no other major currency offers such liquidity, depth of financial markets, and store of value. ...
Have the Limits to Economic Growth Really Been Reached? Saturday, April 26, 2014
Robert Gordon has painted a dark picture of the world’s long-run economic growth prospects. But if the past is any guide, he will likely prove to be far too ...
Do We Really Need a Larger IMF? Sunday, March 9, 2014
Several developments should cause the U.S. Treasury to reverse itself in favor of a smaller International Monetary Fund.
Yellen’s Wishful Thinking Tuesday, February 18, 2014
The new head of the Federal Reserve is imprudently dismissive of concerns about recent international economic developments.
Europe’s Outlook in 2014 Sunday, January 12, 2014
With European policymakers complacent, it is unlikely that progress will be made this year in reducing Europe’s record unemployment rate or in preventing a ...
Why Greece Will Leave the Euro Friday, December 6, 2013
As Greece's political and economic conditions worsen, the conventional wisdom about Greece never abandoning the euro will be sorely tested.
Europe’s Deflation Challenge Tuesday, October 29, 2013
Easy global liquidity from quantitative easing in the United States has masked deflation and public debt vulnerability in the European periphery, and the ...
Europe the Morning After the German Elections Thursday, October 3, 2013
Angela Merkel’s impressive reelection win indicates little will change in Germany’s Europe policy.
The European Central Bank’s Clay Feet Tuesday, July 23, 2013
The president of the ECB should not believe his own hype: Europe’s economic crisis is far from over.
The ECB Delays at Europe’s Peril Thursday, June 13, 2013
Without bold action from the European Central Bank, it is difficult to see how the European periphery can avoid sinking ever deeper into economic recession in ...
10 Lessons from Cyprus Thursday, April 25, 2013
Here are the likely lessons future historians will draw from Cyprus’s sorry experience in the euro.
Cyprus’s Imminent Collapse Wednesday, March 27, 2013
Any calm bought by the IMF-EU bailout package for Cyprus will be short-lived. Cyprus is all but certain to experience an economic collapse over the next two ...
The Biggest Loser: Europe and the Global Currency War Monday, February 11, 2013
One can only hope global policymakers wake up to the risks of a strengthening euro before it is too late.
Angela Merkel’s Cypriot Headache Wednesday, January 16, 2013
German Chancellor Merkel will want a quick resolution of the Cypriot economic and financial crisis so that a bailout does not become a domestic political issue ...
No Easing in the European Crisis Wednesday, January 2, 2013
Far from fading, it is all too probable that the European crisis will intensify over the course of the coming year.
Gushing about America’s Energy Future Monday, December 3, 2012
A triumph of market forces rather than government planning.
Don Quixote Is Alive and Well and Living in Spain Wednesday, October 17, 2012
Spain is the euro area’s fourth-largest economy. Bad government policy threatens the whole euro project and the global economy.
An Own Goal in Portugal Saturday, September 22, 2012
The Portuguese economy will be in for the roughest of rides in 2013 if the government goes forward with a proposal to change corporate social security ...
President Obama’s Ticking Greek Time Bomb Wednesday, August 15, 2012
Developments in Athens suggest matters are spiraling out of control.
Groundhog Day in Europe Friday, July 6, 2012
European policymakers have to be concerned that the half-life of their band-aids is getting shorter and shorter while resistance to these measures gets ...
The Predictable European Summit Ritual Wednesday, June 27, 2012
At the upcoming summit, Europe’s northern countries will again reject southern countries’ proposed solutions to the European debt crisis, and the euro crisis ...
Does Greece’s Election Really Matter? Friday, June 15, 2012
The election will just postpone Greece’s inevitable default on its official debt and its unavoidable euro exit by a month or two.
Who Lost Greece? Wednesday, June 6, 2012
A relatively insignificant southern European country threatens the very survival of the euro in its present form. How did we get here, and what lessons does ...
Europe’s Future on the Ballot Tuesday, May 1, 2012
Depending on what happens this weekend, Europe should start bracing itself for a renewed intensification of its sovereign debt crisis.
The Next and More Serious Phase of the European Crisis Monday, April 23, 2012
Two upcoming political events could usher in a new, worse phase of the European debt crisis.
Europe’s Financial Maginot Line Tuesday, April 3, 2012
Europe’s proposed financial firewall around Spain and Italy will likely prove as effective in protecting those countries from another market onslaught as was ...
Time for Greece to Leave the Euro Tuesday, March 20, 2012
It is difficult to overstate how badly the Greeks were misled by the IMF and EU. Greece’s only path forward is to reintroduce its own currency.