euro
Austerity, mutualization, monetization, or some combination thereof? What path will Europe take?
Should a bank run in Italy ensue, could the euro fall apart?
Amid austerity and a weak economic recovery, the electoral gains made by anti-EU parties (nicknamed the "Eurosceptic earthquake") in the European Parliament elections in May have caused much speculation.
Thomas Mayer argues persuasively that Europe’s Economic and Monetary Union (EMU) could work if the member states would embrace a new EMU architecture. Even though all past monetary unions of sovereign states have failed, Mayer remains hopeful that the EMU can develop a more robust framework and contribute to the historical work of European unification.
Noted behavioralist and value investor James Montier addressed the prospect of investing in European stocks through the framework of his Seven Immutable Laws of Investing — a set of common sense, value-based principles that are too often violated by the typical investor.
Unsurprisingly, a major theme of the Fifth Annual CFA Institute European Investment Conference was the prospect for the euro. While speakers put forward different arguments, ultimately it seems the resolution must come from choices made about the political economy.
The European sovereign debt crisis has been occupying a disproportionate amount of investor mindshare over these past many months. Yet there is another potential debt crisis in Europe that is receiving… READ MORE ›