This type of academic article is all well and good but, as noted below by John Silva, it is now out of touch with the reality on the streets of southern europe.
We are now in the political phase of this crisis, having decided that the economic fault lies with the US and the UK while the solution is to make Germany pay up!
From a technical perspective it is difficult to argue with this article, but it fails to take into account the psychological difference between an expanding economy and a stagnating economy.
China for all its faults has the bone between its teeth while the US and most of Europe are chewing on sinew with decayed stumps.
OK China will gradually peak, as Japan did, but what happens to an economy that is declining, do`s it bottom out or just continue to sink?
The hope is that the US will pull itself up as it always has in the past, but can we in Europe?
Why Stimulus Has Failed
This fits in with my views, I have long held the opinion that we in the west are junkies addicted to the cocktail of consumerism and self importance.
I see little desire to change , indeed the desire, craving, is to return to the pre bust party.
Sad really.
An Optimistic Case for the Euro
This type of academic article is all well and good but, as noted below by John Silva, it is now out of touch with the reality on the streets of southern europe.
We are now in the political phase of this crisis, having decided that the economic fault lies with the US and the UK while the solution is to make Germany pay up!
Reinventing the Sino-American Relationship
From a technical perspective it is difficult to argue with this article, but it fails to take into account the psychological difference between an expanding economy and a stagnating economy.
China for all its faults has the bone between its teeth while the US and most of Europe are chewing on sinew with decayed stumps.
OK China will gradually peak, as Japan did, but what happens to an economy that is declining, do`s it bottom out or just continue to sink?
The hope is that the US will pull itself up as it always has in the past, but can we in Europe?
Down with Debt Weight
To forgive or not to forgive, that is the question. The answer may be in the Merchant of Venice, a pound of flesh!
But who`s flesh is the question now, a bankers or a workers?