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Governments and heads of government

| Posted by: Paul Donovan | Tags: Paul Donovan

  • German negotiations to form a grand coalition government are continuing. An opinion poll suggests that a majority of the electorate would favour another CDU-SPD grand coalition. Such a government would put the anti-party AfD in place as the official opposition in the Bundestag.
  • Ireland's government faces an opposition motion of no confidence in the deputy prime minister tomorrow (a general election is expected if the opposition win). This EU heads of government summit may have one leader (Merkel) negotiating a coalition, one leader (Varadkar) fighting election, and one leader (May) needing both of them to advance UK exit negotiations.
  • Haldane of the Bank of England and Kashkari of the US Federal Reserve are due to speak, in an otherwise barren calendar of economic events. With so many vacancies on the Fed next year, it is difficult to extrapolate speeches today into policy tomorrow.
  • The Bitcoin price has had another boost, and there is evidence of a significant number of smaller investors now participating. The economics of this suggest a concentration of wealth (lots of bubble buyers give money to a small number of bubble sellers), and an uneconomic allocation of resources. See the latest Chief Economist's Comment.