Sunday, May 13, 2012
Is Europe on a Cross of Gold?
Prof. Eichengreen points out the great differences between the Thirties and now.
Read it at Project Syndicate
Is Europe on a Cross of Gold?
by Barry Eichengreen | Professor of Economics and Political Science at the University of California at Berkeley, and a former senior policy adviser at the International Monetary Fund
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4 comments:
I tried several times to open the link but couldn't. Still the article sounds interesting.
Tom Hickey:
I finally connected and I thought it was a good article. I am interested in knowing what you think of the chances of the Euro surviving.
Everyone seems determined to make it work. The peripheral countries are not blaming the eurocrats as much as their own corrupt systems. It really depends in Germany if the going gets really rough. They are ones most responsible for jamming austerity. It's not only an economic and political issue for them but also a moral one.
If they want to make the euro work, and Germany won't allow the ECB to do it takes to do it, then the best course would be for Germany to go back to the DM and let the rest of the countries try on a more level and symmetrical playing field.
Right now Germany is using the euro for its own mercantilist advantage, the relative value of the euro being lower than the DM, giving Germany the export advantage, which is bleeding the other EZ countries to whom Germany is exporting, running up their debt.
Some bold predictions from Krugman today:
http://krugman.blogs.nytimes.com/2012/05/13/eurodammerung-2/
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