The current combination of sectoral balances makes the EA highly vulnerable. If private corporations remain net savers in a weak economy, and if governments consider their current deficit levels just about good enough to meet their fiscal rules, any turbulence originating from a rising value of the euro in the foreign exchange markets or from a further slowdown in the U.S. would leave private savings with no support and set the conditions for another recession.Money And The Real Economy
Debt and savings in the euro area: An update (and how net exports have been keeping the EA afloat so far)
Andrea Terzi, Professor of Economics, Franklin College, Switzerland
1 comment:
Mercedes Benz really looks like they are going "down market" in US to me....
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