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government spending

Germany doesn’t like its own fiscal union, so why would it ever agree upon a European one?

If I asked you how the structural problems of the Eurozone may be resolved, I am sure that the suggestion of a fiscal union in which transfer payments will be made by the “rich” Northern member states to the “poor” ones in the South of Europe would rank amongst the top answers. I’ve been wondering for a while if the member states could ever agree upon major fiscal transfer payments and if it wo…

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The US: living in a lower population growth environment

The 2000s were the slowest decade of population growth in the US since the Great Depression. The first set of state population counts for 2011 revealed that there has been no change to this trend. The US experienced the lowest annual population growth rate in 2010-11 since 1945.

William H. Frey concludes that the weak labour market in the US appears to have slowed down immigration to the US and…

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See you on the other side

Now that the new budget has been announced by George Osborne and spending review disseminated, the coalition is lauding its merits and the opposition is deflecting responsibility for the deficit and exposing flaws in the cuts.  Today’s budget and public sector reforms will see billions cut from welfare spending, Whitehall budgets reduced, the retirement age raised, quangos culled and a permanen…

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A Nobel aim – to find the right match and reduce the poison of long term unemployment

Hi everyone, I’m the new guy on board. I started at M&G last week but the rest of the team is already working really hard to find me a ridiculous nickname.

Yesterday morning, I saw a familiar face in the news. My macroeconomics professor at LSE, Christopher Pissarides, had just won the Nobel Prize in economic sciences (jointly with Dale Mortensen and Peter Diamond). On top of being an exception…

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Greece enlightening

Yesterday I attended a presentation by Greek officials and delegates from the IMF and EU as part of the London leg of a two day European trip.  Considering this was a two day roadshow designed to reassure investors and rebuild confidence in Greece, and the speakers were Greeks and the guys who’ve lent them lots of money (and are likely to lend lots more), it was never going to be anything other…

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A letter from Ireland to M&G’s Bond Vigilantes

Dear Bond Vigilantes,

The small nation of Ireland has received more than its fair share of press since the credit crunch started three years ago. The financial crisis has not been kind to the Irish economy, with the collapse of the Irish property bubble having a profound impact on citizen’s net wealth and psyche. In fact, Ireland was the first country in the EU to officially enter recession. As…

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The Newspapers’ Dilemma: Finance or Football

I wrote a while back about the Spanish Bank Banesto offering a deposit account that jumped from 3% to 4% should Spain win the world cup.  In the UK, Nationwide has followed suit and is offering a 4 Year Football Bond that increases from 4.15% to 4.65% should England emerge victorious at this summer’s tournament.   The investors in this product will be hoping for the swift progress for the natio…

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