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  • Markets & Economy

Europe’s Worsening Fiscal Space

Europe’s fiscal outlook appears in some ways worse today than in March 2012, potentially raising the prospect of financial shocks and higher credit default risks.

  • Markets & Economy

Another Greek Rock Roll

Greece again finds itself on an economic precipice, with CDS spreads nearing a level on par with last summer’s crisis. A look at potential short- and long-term consequences.

  • Markets & Economy

Greek Sovereign Default Doesn’t Ensure Grexit

Greece remains exposed to the possibility of a sovereign default and the reintroduction of the drachma, but three historical case studies suggest that the former need not induce the latter.

  • Markets & Economy

Markets Underestimate Currency Peg Risks

Investors seemed to underprice the risk of the Swiss franc de-pegging from the euro by more than ten standard deviations. What does this mean for other pegged currencies?