The Euro-zone has entered an expected consecutive recession, which has resulted in diminishing public confidence in EMU policy-making. With negative growth prognosis in the Euro-zone, issues have been multiplied and solutions simplified. As a result such a detrimental status quo exacerbates the inconvenient truth about the common currency.
Posts Tagged ‘ Euro-zone ’
In the sinister interplay between credit raters, banks, European politics and taxpayers, the first two win and the last one loses. European politicians should stop denying agency to ‘the financial markets’ and act as though they are neutral actors guided by an invisible hand. Rather, they are self-interested actors in the global capitalist systems. European politicians are to blame for not recognizing this, and for letting taxpayers clean up the mess left by failing governments and failing banks.
Great news: in anticipation of a more structural solution to the Eurozone’s debt problems, the euro has been rising in comparison to other world currencies for several weeks. What the, more permanent, stabilization plan will look like has not leaked out yet. Perhaps it will include some plans to fully, or at least partially, start [...]
What is the best way to understand the current Euro-crisis? Perhaps the best perspective is the one of an outsider: two weeks ago American nobel-prize winning economist Paul Krugman wrote a very insightful and accessible analysis of the problems in the Euro-zone. Very worthwhile! http://www.nytimes.com/2011/01/16/magazine/16Europe-t.html?_r=1&scp=3&sq=Krugman%20Europe&st=cse