The German economy seems to be on standby, waiting for uncertainty to dissipate further and drag from foreign demand to decrease.
The implications of the present situation in Spain could be more far reaching than is currently anticipated and the contagion it represents could lead to a fundamental change in the world’s monetary order.
Michael Hudson’s presentation for the session “The Challenge of Deleveraging and Overhangs of Debt II: The Politics and Economics of Restructuring” at the Institute for New Economic Thinking’s (INET) Paradigm Lost Conference in Berlin.
Talk at the panel entitled «The Future of Europe» at the Institute for New Economic Thinking’s (INET) Paradigm Lost Conference in Berlin.
A common denominator runs throughout recorded history: a rising proportion of debts cannot be paid.
Yes, the economic paths for the peripherals are severely uphill, but reforms being implemented should allow for modest growth starting in H2.
«We are all making promises that we cannot keep, to our creditors and to our citizens» – Robert Lucas Jr
Interview with Nobel Laureate Robert E. Lucas, Jr.
Mr. Draghi displayed great finesse in pooh-poohing the apparent rift with the Bundesbank regarding the volume of the LTROs.
The high levels of debt and the lack of competitiveness in some southern European states are partly due to inefficient structures of government operation and public administration. Structural improvements in these areas are essential for political reforms and economic stability. Temporary “technocratic” governments in some countries could represent an intermediate stage. The principle which should apply is that it is not necessarily less state intervention that helps to solve problems but more efficient administrative structures. Europe can only remain united in diversity in the long term if the ability to achieve political reforms is guaranteed.
Yanis Varoufakis provides an intimate look at the Greek crisis while deconstructing some of its myths.
Greek citizens will still have to adapt and accept many unpopular changes, but after “screwing” the foreign bankers, they might be that much less reluctant, especially with any signs of growth appearing in the economy.
Germany is likely to slide into a (technical) recession in the first half of the year.