Europe Should Learn From Uruguay
European policymakers grappling with problems in Greece, Portugal, Ireland and Spain should follow the path set by the Uruguayan government a decade ago
He has just published a book /med förord av Paul Volcker/ called
You have got to show that there's a plan for growth because people will not buy into endless austerity, and the Greek people haven't," he added.Full text
Citigroup, the nation's third-largest bank by assets, was on the verge of being closed by regulators
A market correction is coming, this time for real
Much of the good news has come as a result of extraordinary levels of liquidity pouring into opportunities around the globe. To a large extent this is due to the Federal Reserve’s expansionary monetary policies early in the decade and the US administration’s fiscal stimulus. The yen carry trade has also facilitated the buoyant expansion of investments and leverage evident everywhere today. The low spreads, the tremendous build-up of liquidity, the reach for yield and the lack of differentiation among borrowers have stimulated both dynamic growth and some real concerns.
What is clear to me is that in the next year a material correction in the markets will occur.
Today, hedge funds, private equity and those involved in credit derivatives play important, and as yet largely untested, roles. The primary worry of many who make or regulate the market is not inflation or growth or interest rates, but instead the coming adjustment and the possible destabilising effect these new players could have on the functioning of international markets as liquidity recedes.
Mr. Rhodes gained a reputation for international financial diplomacy in the 1980s for his leadership in helping manage the external-debt crisis that involved many developing nations and their creditors worldwide. During that period and in the 1990s he headed the advisory committees of international banks that negotiated debt-restructuring agreements for Argentina, Brazil, Mexico, Peru and Uruguay.
THE BRADY PLAN AND MARKET-BASED SOLUTIONS TO DEBT CRISES
Crisis Resolution and Private Sector Adaptation
Latin American debt crisis