The Cypriot finance minister Michael Sarris yesterday announced that Cyprus would introduce capital controls (see an FT report here). He announced that measures would be “very differentiated” according to the situation of the bank and as loose as possible in order to allow for a restart of the economy. Read more
Bruegel blog
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It is not yet too late to drop the idea of capital controls in Cyprus
27th March 2013
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Capital controls will put the euro at risk
26th March 2013
The currency in Nicosia will no longer be worth the same as it is in any other country, says Guntram Wolff. Read more
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Blogs review: Big Data, aggregates and individuals
26th March 2013
What’s at stake: The Big Data enthusiasts compare it to a revolution. For the agnostic observer, it is interesting to move beyond this general and somewhat speculative discussion and get a sense of what these massive quantities of information produced by and about people, things, and their interactions can and cannot do. Read more
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Capital controls on Cyprus seem to have been avoided (or not?)
25th March 2013
As my colleague Zsolt Darvas has pointed out, the eurogroup agreement of last night looks pretty good given the circumstances. A number of very important decisions have been taken that need emphasizing. Read more
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The new Cyprus deal: victory of common sense
25th March 2013
The new deal on Cyprus does not only have the right intentions, but averts the two major flaws of the previous deal: It fully protects insured deposits up to the €100,000 amount guaranteed by deposit insurance in all banks, and It bails-in all bondholders and shareholders. Read more
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Where has all the (base) money gone?
25th March 2013
The short answer is: into the liquidity trap. Read more
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What comes after finance in Cyprus?
24th March 2013
The prominent role of Cyprus's financial services is probably over anyway, irrespective of the actual content of the forthcoming agreement between the troika and Cyprus. I put together some simple tables showing the structure of the economy in Cyprus and in three other countries that suffered from massive banking crises during the past few years: Ireland, Iceland and Latvia (see a December 2011 policy contribution of mine comparing the adjustments of these three countries - "A tale of three countries: recovery after banking crises"). Here are some observations. Read more
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Capital controls in Cyprus: the end of Target2?
23rd March 2013
After the decision of last Saturday, an even bigger mistake is under way. Cypriot lawmakers have on March 22 almost unnoticed passed a restriction bill that allows the introduction of capital control. Read more
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Wealth distribution in the eurozone
22nd March 2013
The eurosystem has worked for a number of years now on a very comprehensive survey, called Household Finance and Consumption Network (HFCN). Data will be published in soon. Read more
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Chypre : calculs, cafouillages et émotions
22nd March 2013
Une bonne intrigue combine classiquement le froid calcul des acteurs rationnels, la dose de cafouillage nécessaire au réalisme, et ce qu’il faut d’émotion pour électriser. Les trois éléments se retrouvent dans le drame chypriote. Read more
