Recently, I was researching a post on US v EU unemployment. No.1 on Google (a news result) was a post with some observations on EU vs US economic policy. This paragraph caught my attention …But many European countries have completely mismanaged their budgets for continued government stimulus, which lends to the argument of free market …
When President Holland was elected in the summer, he suggested that Europe would turn against austerity and promote economic recovery as the most important objective. However, despite his early promises, the French budget is strongly deflationary. Given the state of the current French and Eurozone economy, this budget is likely to push France into prolonged …
Recently, I posted about the current fall in M4 lending in the UK. The concern is that fears over possible future inflation are preventing decisive action to promote economic recovery. But, these fears are misplaced. The fall in M4 lending in the UK is a sign of a fundamental weakness in demand. Given this weakness, …
What are the key issues affecting the UK economy over the next few years? Recession and Recovery The biggest problem facing the UK economy is the lack of economic recovery. After a fall in GDP of 6% in 2008/09, the economy briefly recovered, but the recent double dip recession of 2012 has left the UK …
This is an article published in the LSE about the Austrian view of the Eurozone crisis ‘The Work of Hayek shows why EU governments can’t spend their way out of problems‘ I’ve attempted to summarise the article, but I advise reading it for yourself: The recent boom and bust was caused by artificially low interest …
Readers Question: Would a devaluation help Greece? If you look at the Greek economy, their exchange rate has been effectively overvalued for several years. This overvalued exchange rate has caused Greek exports to be relatively uncompetitive and has caused various economics problems. Combined with efforts to tackle an unsustainable debt level, the over-valuation has contributed …
Readers Question: Does Germany Benefit from the Euro or does it lose out from the Euro because of the cost of bailing out weaker southern European countries? It is a difficult question to answer, but Germany has gained many advantages from membership of the Euro. There are also many costs involved. Firstly, you could look …
Readers Question: What do you think about Argentina’s economical future, with the current presidents politics and ~v22% inflation, taken in mind? Argentina performed relatively well since crisis of 2002 (see: Argentina Recovery and Crisis). Leaving their exchange rate peg enabled some re balancing in the economy and helped to boost exports. Importantly, it left the …