Charles Wyplosz


When the IMF evaluates the IMF

The IMF has just released its self-evaluation of its Greek lending, in which it admits to many mistakes. Charles Wyplosz argues that the report misses one important error – reliance on the Debt Sustainability Analysis..

Public debt in the Eurozone

The German Council of Economic Advisors recently proposed a mechanism for the orderly restructuring of sovereign debt in the Eurozone. The proposal builds on logical errors and embeds well-established ideas in a setup that suffers from serious limitations.

The new E.U.

The new bailout deal for Greece was not easy. Professor Wyplosz argues that it was also a failure. It will not be enough to recapitalise banks, it asks for structural reform that exceeds Greek capacities, and it raises the Greek debt-to-GDP ratio to unsustainable levels. In a few months or quarters, the programme will fail and the Grexit question will flare up again.

The cost of central bank dependence

Professor Charles Wyplosz on this weekend’s dramatic events which saw the ECB capping emergency assistance to Greece. The ECB’s decision is the last of a long string of ECB mistakes in this crisis taking the politicisation of the ECB to new heights.

The coming defaults of Greece

It seems that there will be no agreement between Greece and its Eurozone partners. Short of cash, the Greek government will have no choice but to suspend payment of its maturing debts. Prof. Charles Wyplosz looks at what happens next. In brief, it will be very much up to the ECB to decide.

Is the ECB doing QE?

The ECB announced that it would begin buying securities backed by bank lending to households and firms. The markets and the media generally greeted this announcement with enthusiasm, but Charles Wyplosz, Professor of International Economics, identifies reasons for caution.

The Ukraine-Russia deal

Professor of International Economics at the Graduate Institute in Geneva, Charles Wyplosz explains why the Ukraine-Russia deal involves politics as much as economics. However, the economics of the deal will eventually lead to problems for one or both.

Cyprus: The next blunder

Charles Wyplosz, Professor of International Economics, examines the The Cyprus bailout package and its tax on bank deposits. “It is a seriously dangerous policy, It is a radical change that potentially undermines a perfectly reasonable deposit guarantee and the euro itself.”

Happy 2013?

Financial market quiescence has removed pressure for immediate policy action on the Eurozone crisis. While important repairs were made in 2012, the most difficult ones still lie ahead. Much remains to be done by unwilling politicians. Things will have to get worse before they get better.

Thanks to the ECB

Financial markets once again pushed Eurozone leaders to act. European Central Bank President Draghi recently promised to “do whatever it takes”. Charles Wyplosz, Professor of International Economics at the Graduate Institute, Geneva argues that Draghi made an implicit commitment to act as lender of last resort to Eurozone governments.