Guest Link Post by MoreLivers.
** Revisiting the Eurodebate – A Fistful of Euros
Blames the key European politicians, especially the French and the Germans and the European Commission officials, who designed the Euro and the Eurosystem, delivering rock-bottom interest rates to countries in the grip of land fever, and one that couldn’t cope with a banking crisis although it included the biggest banking system in the world.
Euro Zone Death Trip – Krugman / NYT
(Bonus for the Hitler-card): Germany’s inflation expectations at 1% for the next five years. To get any competitiveness, PIIGS must resort to massive deflation, which is hard to do. Germany should remember how Chancellor Brüning made the depression in 1930-1932 even worse by sticking to gold standard and balanced budgets, followed by you-know-what.
Europe Drifts Towards the Brink of a Cataclysm – EconoMonitor
Transcript of Press Conference on Europe – IMF
Jean-Claude Trichet: Preventing spillovers on the global economy – BIS (pdf)
Jürgen Stark: The global financial crisis and the role of monetary policy – BIS (pdf)
And much more below.