Monday, November 14, 2011

All Quiet on the German Front

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The interview with Bundesbank President Jens Weidmann in today's Financial Times shows that the walls of German policy blindness are no...
Sunday, November 13, 2011

Roubini Prophetic Again

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Just a short note to mirror the blogosphere: If you want to know why Italy has been sliding into a debt spiral, it was all predicted by No...
Friday, November 11, 2011

Krugman Gets Religion

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Paul Krugman, in his blog today "Original Sin and the Euro Crisis" , waxes biblical about why the Euro is like a bite from the poi...
Wednesday, November 9, 2011

Fiddling While Rome Burns (or, Where is the Cavalry?)

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While European leaders have been fiddling over how to leverage the EFSF rescue fund to prevent contagion to Italian and Spanish debt, Italy ...
Sunday, November 6, 2011

Internal vs. External Devaluation: The Debate is Being Decided on the Ground

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When a country's competitiveness deteriorates for whatever reason (excessive inflation, devaluation of a major competitor, end of a fore...
Wednesday, November 2, 2011

The Law of the Accelerating Euro Bailout

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I have now discovered a new economic phenomenon: the law of the accelerating euro bailout . Each crisis summit leads to an increase in guara...
Sunday, September 25, 2011

Blood, Toil, Tears and Sweat: The Euro Stops Here

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The last time Europe tried fiscal austerity to solve an international financial crisis (under Heinrich Brüning in Weimar Germany, 1931), it ...