The severity of Latvia’s economic depression and the government’s deflationist policies have never been in doubt. However, the success of the internal devaluation process remains questionable. The adjustment process was meant to lower domestic prices, particularly wages, in order to restore the international competitiveness of the economy and stimulate exports. According to the latest data,… [Read more]

The last few weeks have certainly been good to the Spanish on the football pitch and the tennis court. But as the sporting hangover begins to wear off, all eyes will return to the ailing economy. Unlike Greece, Spain has not come to the forefront of investor concerns in recent months because of its sovereign… [Read more]

Last week Mark Schaltuper, BMI’s Head of Europe Analysis, spoke on CNBC European Closing Bell about the prospect of an internal devaluation for the least competitive eurozone economies.

Financial markets seem to have a very short memory span when it comes to aligning with macroeconomic fundamentals these days. Though the release of housing sales numbers in the US today and the short-lived euphoria of China’s loosening of its exchange rate regime at the start of the week seem to have shaken up equities… [Read more]

Cautious appears to be the best way to describe sentiment among Mexico City’s executives and bureaucrats at present, or at least that was the feeling Risk Watchdog came away with after spending a week on the ground there. This is not surprising, given the severity of the blow to Mexico’s economy from the recent downturn…. [Read more]