Saturday, June 22, 2013

Dirk Ehnts — M2 developments in the euro area (2003-2011)

The big question in Europe: is the collapse of the economies of Greece, Spain and Ireland caused by a decline in the monetary aggregate M2, or is the economic decline causing M2 to fall? I would argue the latter, as lenders frantically try to pay off existing back and new borrowing is very low. Not everybody agrees with that. Here is Milton Friedman and Anna Schwartz....
M2 developments in the euro area (2003-2011)
Dirk Ehnts | Berlin School of Economics and Law

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