Countries using the Euro de jure Countries and territories using the Euro de facto Countries in the EU not using the Euro (Photo credit: Wikipedia)

This is an excellent article from leading Oxford macro-economist, Simon Wren-Lewis.

mainly macro: Draghi at Jackson Hole.

Wren-Lewis takes a very hard look at ECB head, Mario Draghi‘s speech, at the symposium in Jackson Hole, US. The conclusion is that whilst there is some comfort, the words are still ambiguous, so there could still be more pain for Southern Europe.

For me, it is more interesting and positive that the European Commission are going to find EUR 0.5 billion for additional investment in both the public and private sector.

Given Draghi’s ambiguous performance, I fear that speculators will again target the Euro.

For the moment, I see little let up of the excessive austerity heaped on Southern Europe by the troika of the IMF, the ECB and the European Commission. Jobs come from small businesses but they are still being starved of funding in Greece, Portugal, Spain, Cyprus, and Italy – so eye-watering unemployment rates are likely to continue.

Thoughts?

via mainly macro: Draghi at Jackson Hole – Simon Wren-Lewis.

Related articles

• mainly macro: Does politics dominate economics in Eurozone crisis management? – Simon Wren-Lewis
• Mario Draghi Gave A Fantastic Speech On What’s Wrong With Europe, But He’s Still In Denial On One Big Thing
• mainly macro: Balanced-budget fundamentalism – Simon Wren-Lewis
• This Chart From Mario Draghi Reveals The Slow-Motion Catastrophe That Is The Eurozone
• ZeroHedge: Futures Tread Water As Ukraine Tries To Steal The Jackson Hole Scene
• Euro Exposed to Fresh Lows as Draghi Invites New QE Speculation
• Draghi backs tax cuts in shift away from austerity
• Draghi: ECB can’t do it all, governments must act
• ECB’s Draghi Open to Easing of Austerity in Eurozone