Cyprus Seeking Bailout

2 June 2012

According to a Wall Street Journal article from yesterday Cyprus Seen Close to a Request for Bailout, Cyprus (2011 GDP: €18bn approximately) is set to become the fourth Euro Area nation to seek a bailout after Greece, Ireland and Portugal. According to the WSJ: Late last year, the country negotiated a €2.5 billion ($3.1 billion) bilateral loan […]


I Like Martin Wolf

14 April 2012

Updated: 14 April 2012 at 3:30pm GMT (Chart added) Martin Wolf has just written an article on FT: Why the Bundesbank is wrong questioning the arguments made by Jens Weidmann, president of the Bundesbank. (This speech: Rebalancing Europe). This chart is interesting: (click to enlarge) Wolf says: Arguably, the crucial step is to agree on the nature of […]


Exorbitant Privilege

18 March 2012

My last post was on U.S. net income payments from abroad and how it continues to be in the favour of the United States. The late Wynne Godley had been analyzing this since 1994. In an article titled U.S. Trade Deficits: The Recovery’s Dark Side?, written with William Milberg, he had a section called “Foreign indebtedness and the […]


The Curious Case Of U.S. Net Income Payments From Abroad

14 March 2012

The world economy has grown over the last so many years with the United States acting as the importer of the last resort. However, the U.S. current account deficit acts to bleed the circular flow of national income and weakens demand in the States. The nation still grew because of a huge lending boom. Today, […]


€2.2 Trillion

6 March 2012

Found this graph at this hilarious blog which quotes Diapason Research. The graph plotted by the researchers uses cumulative current account balances from IMF’s data. I instead directly used the Net International Investment Position at the end of Q3 2011 from Eurostat. The blue bars plot the net indebtedness of each EA17 nation (with signs reversed) and […]


Some GIMP Fun With Spain’s Sectoral Balances

24 January 2012

… but not fun for the Spanish people. In yesterday’s post Spain’s Sectoral Balances, I briefly discussed the sectoral balances of Spain and its connection with demand, income and output. Here’s the original graph from the Banco de España again with my viewpoints in the previous post. I learned some GIMP from a friend some […]


Spain’s Sectoral Balances

23 January 2012

The Banco de España released its Quarterly Economic Bulletin today and it had an interesting chart on the sectoral balances of the Spanish economy. With a net indebtedness of €994.5bn – i.e., close to €1 trillion – as compared to the gross domestic product of €1.06tn (2010 figure) Spain has limited choices. Except via the possibility of expanding […]


UK/US Sectoral Balances

6 December 2011

Martin Wolf wrote a blog post yesterday on FT: Understanding sectoral balances for the UK where he compares the sectoral balances for the United Kingdom and the United States. To me both the similarities and differences are interesting. The following charts are from his post:


Nice Charts From The Bank Of England

1 December 2011

The Bank of England released the semiannual Financial Stability Report, December 2011 today. Complete book here. These reports have a lot of information, in addition to being well-written, well-formatted and colourful. The following graph shows how international banks’ funding from US Money Market Mutual Funds changed during the year. It also plots the Net International Investment […]


Charts From OECD’s Economic Outlook

29 November 2011

The OECD released its Economic Outlook recently. The preview is available here but download is for subscribers. Else if you are an FT subscriber, you can get it from FT Alphaville’s Long Room. A few interesting charts (at least for me): (click to enlarge) Most Economists (except a few good ones), following the work of […]