The euro zone’s periphery:They’re bust. Admit it.
Greece, Ireland and Portugal should restructure their debts now. It is a measure of European politicians’ capacity for self-delusion that Angela Merkel, Germany’s chancellor, called the euro-zone summit on March 24th-25th a “big step forward” in solving the region’s debt crisis. Something between a fudge and a failure would be more accurate… Πηγή: The Economist […]
Do some countries in the Eurozone need an internal devaluation? A reassessment of what unit labour costs really mean
Felipe, Jesus & Kumar, Utsav. The problem with Greece, Ireland, Italy, Portugal, and Spain is that they are uncompetitive and need to internally devalue – or so the argument goes. This paper challenges this conclusion by pointing out that the measure used to back it up – unit labour costs – is flawed and misguided. […]
A Decade of Debt
Reinhart, Carmen M. & Rogoff, Keneth. With public debt in the US higher than it’s been since 1945 and private debt burgeoning, governments are panicking about the impact of debt overhang on growth. In CEPR DP8310, Reinhart and Rogoff argue that governments have increasingly resorted to undercover restructuring by using the tools of “financial repression” […]