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A superb analysis of the eurozone's imbalances by a mathematician turned economist.
He points out how Germany's current account surplus, tendentially around 6% of GDP, gives her much more leeway to control the budget deficit without jeopardizing the private sector's ability to net save.
Unfortunately the same options are not available to the rest of the eurozone, particularly the periphery.
To keep the eurozone from imploding the suggested solution is for Germany to send back her surpluses as unilateral transfers (not investments!) to the other member countries.
Otherwise the euro may well be doomed.
Anyway, mandatory reading for those of us who follow -and are impacted by - developments in the eurozone
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A superb analysis of the eurozone's imbalances by a mathematician turned economist.
He points out how Germany's current account surplus, tendentially around 6% of GDP, gives her much more leeway to control the budget deficit without jeopardizing the private sector's ability to net save.
Unfortunately the same options are not available to the rest of the eurozone, particularly the periphery.
To keep the eurozone from imploding the suggested solution is for Germany to send back her surpluses as unilateral transfers (not investments!) to the other member countries.
Otherwise the euro may well be doomed.
Anyway, mandatory reading for those of us who follow -and are impacted by - developments in the eurozone
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