Arithmetic is absolute: euro area adjustment
Wolff, Guntram. The European Central Bank’s monetary policy targets the euro-area average inflation rate. By setting conditions for the area as a whole it should ensure symmetric price adjustment. Indeed, consumer price inflation rates provide little evidence of asymmetric adjustment during 2009-11. Only Ireland, which is too small to trigger a symmetric reaction, had significantly […]
Why I can still believe the Euro will survive, just
Wren-Lewis, Simon. Paul Krugman thinks that Greece will probably leave the Eurozone. It is generally foolish to disagree with PK, and what follows is a huge hostage to fortune, but here goes. It is clear that Greece wants to stay in the Euro. Their people do and so do most political parties, including Syriza. Their […]