A safe asset is devised for the euro zone
An ingenious proposal to end banks’ dangerous reliance on domestic sovereign bonds
THESE are bright days in the euro area. Preliminary figures say that the currency zone’s GDP grew by 2.5% last year, the fastest since 2007. But many of the faultlines in the zone’s financial system, as revealed by the financial crisis, remain. A proposal published on January 29th by a group reporting to the European Systemic Risk Board, a prudential supervisor, may mend one of the more troubling flaws.
This article appeared in the Finance & economics section of the print edition under the headline “Breaking the doom loop”
Finance & economics February 3rd 2018
- “Factor investing” gains popularity
- The dollar keeps weakening. Is that good news for the world?
- Might higher interest rates spoil America’s economic boom?
- Cancer is a curse, but also a growth market for investors
- Cars block the road to a renegotiated NAFTA
- A safe asset is devised for the euro zone
- A big Blackstone deal shows how private equity has changed
- Zhou Xiaochuan, China’s central-bank chief, is about to retire
More from Finance & economics
The Federal Reserve’s interest-rate cuts may disappoint investors
Jerome Powell could still surprise on the hawkish side
How China’s communists fell in love with privatisation
Even though they are not very good at it
Norway’s weak currency presents a mystery
The country’s economy is thriving yet the krone is becoming less and less valuable. What’s going on?
An American sovereign-wealth fund is a risky idea
Donald Trump’s latest proposal has worryingly broad support
Can bonds keep beating stocks?
After a terrible couple of months for shareholders, lenders are feeling smug
Why orange juice has never been more expensive
Pity those who rely on the breakfast staple