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Braunberger, Gerald
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5 articles of this author have been cited in the European Press Review so far.
Banks can't solve political problems
Share prices have risen initially in reaction to cheaper access to dollar loans, but it's dangerous for central banks to take on political tasks, warns the conservative daily Frankfurter Allgemeine Zeitung: "Firstly, the easier access to money must not allow them to lose control over the money supply, and consequently over measures for controlling inflation. The programme which has now been published is limited to February 2013, true, but such programmes can be extended. Secondly, monetary policy cannot assume the task of solving public debt crises in the Eurozone. This is and remains above all the task of the government of the country in question. Monetary policy is powerful, but not all-powerful."
» full article (external link, German)
More from the press review on the subject » Economic Policy, » Banks, » Global
IMF reform creates new conflicts
The G20 finance ministers have agreed on a restructuring of the International Monetary Fund (IMF) in which the emerging countries like Brazil, Russia, India and China are to receive more weight on the Fund's executive committee. But the new power balance entails new difficulties, the daily Frankfurter Allgemeine Zeitung warns: "In the past decade the industrial nations have spurred on the liberalisation of the money and merchandise markets, creating an important precondition for global economic growth. Many emerging economies by contrast favour a stronger state influence in the economy. The first lines of conflict, for example regarding monetary policy, are apparent. Europe will only retain an important say in this new world if it can find common positions, and that is not to be taken for granted. In the event of conflict Britain will no doubt side with the US, while France will side with the emerging countries at least every now and again. In such a situation Germany's responsibility will only grow greater."
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More from the press review on the subject » International Relations, » Economic Policy, » Russia, » Europe, » Global, » China, » Brazil, » India
Unconventional but necessary
For the first time the European Central Bank wants to purchase 60 billion euros worth of covered bonds in a bid to encourage the banks to lend money. The daily Frankfurter Allgemeine Zeitung finds the move unconventional: "The ECB's decision is based on the conviction that the economy can only recover if the financial sector is healthy. ... The Canadian economist Harry Johnson once said that the economist's most dfficult task is to explain to people the necessity of measures which they find objectionable for moral reasons. That's how it is now. Governments and central banks - and so ultimately the taxpayer - are taking over major risks from the financial sector, whose irresponsible dealings contributed substantially to this crisis. There are plenty of good reasons for finding this morally questionable. Unfortunately it's necessary."
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More from the press review on the subject » EU Policy, » Fiscal Policy, » Economic Policy, » Europe, » Global
Sinking oil prices
Within a few weeks the price of oil has sunk around 20 percent from its all-time high. "This is good news for investors in stock markets and the sorely tried car drivers at petrol stations," comments the daily Frankfurter Allgemeine Zeitung. However it adds that the times of cheap raw materials have nonetheless come to an end: "The prices are going down because demand for raw materials is likely to grow slower than expected following forecasts for a marked slowdown in global economic growth. Should the economic forecast worsen, a further decline in raw material prices cannot be ruled out. Yet people would be ill-advised to start hoping that the times of cheap raw materials will return. The entry of densely populated newly industrialised countries like China, India, Brazil and Russia into the global economic division of labour is irreversible. They will join the ranks of the world's greatest consumers of raw materials ... in the foreseeable future. The decline in oil prices over the past few weeks does nothing to change the fact that people must learn to produce and live in ways that are more energy efficient."
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More from the press review on the subject » Energy, » Trade, » Consumers, » Global
The financial market's crisis of confidence
Gerald Braunberger has little sympathy with the calls for central banks and governments to come to the aid of banks. Josef Ackermann, CEO of Deutsche Bank, had previously explained that the market's self-help mechanisms no longer function in a crisis of this nature: "It has nothing to do with social envy to point out that successful bank managers earn tens of millions a year, and the successful managers of hedge funds and private equity companies even more. At such times bank managers cast themselves as advocates of the free market. But as soon as the house of cards of speculation threatens to collapse, they expect the central banks and taxpayers to help them out. For the sake of the common good, the state has no alternative but to do this. But such rescue operations severely damage the reputation of the financial sector. It has only itself to blame for the fact that people are now calling for tighter controls."
» full article (external link, German)
More from the press review on the subject » Fiscal Policy, » Financial Markets, » Global
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