Many commentators fear that the currency union degenerating to redistribute Union. Less irresponsible governments save by permanently transfers the most wasteful states. The incentives are similar to those of the German fiscal equalization. Thrift pays off, because surpluses are subtracted. Waste will be rewarded with grants. Readmore…
Guest Post:
The redistribution Union is clearly well-
January 27th, 2012
Normally, economists actually say little or nothing about intergenerational equity issues. Too vague, the concept of the term meaningless. How should the war experiences of the one with the environmental problems of another generation and then set off even with the respective pension payment? An impossible task. Readmore…
Europe's false friends
January 24th, 2012
Nothing is without alternative. There are in the current situation and with a short-to medium-term time horizon to deal various ways, with the European sovereign debt crisis. One of those ways requires to accept the Greek default and let the creditors of Greece make the appropriate depreciation. Jeopardize systemically important banks, then a recapitalization of the banks is to be made. Readmore…
Federal Minister of Economics and Vice-Chancellor Roesler argued publicly for an “orderly state insolvency” to think. He has been criticized by his cabinet colleague, Finance Minister Schäuble, and the public, especially by Chancellor Merkel. His party colleague, Minister of State Hoyer, has criticized the Minister of Economy. Readmore…
Swiss National Bank pulls the ripcord
franc pegged to the euro
January 18th, 2012
On 6 September removed the Swiss National Bank announced that it was only a matter of time before it would come to a trend reversal. The devaluation of the euro and the appreciation of the franc began in 2008 and is continuing steadily since then.A second argument that plays on the grounds of the current action as well as in the intervention period 2009/2010 a role to trigger more expansionary monetary policy impulses. Readmore…
Today is Of the “United States of Europe” spoken by a European economic government and by a European finance ministers. A European joint liability, a financial and a transfer union are to become everyday vocabulary, is being given to their specific content any more. They seem now to be “no alternative”. Readmore…
Perhaps we should think of a dense cluster like a fishing net. At the points in the network, where the threads are firmly lashed together and the nodes very close together, sticks to the most loot. Where the connections are worn out or open up holes, even first loses a fraction of the potential catch flutes, which impacts negatively on turnover and profit. Readmore…
After stroke with Adam: The tricks of rogue states debt
January 14th, 2012
You have to literally read to the end. Only in the last chapter of the last, fifth book of the “Wealth of Nations” Adam Smith comes to speak on the national debt. Read today reading dissolves in the wake of the crisis from € ambivalent feelings: It is comforting to see that the states in the 18th Century were not a whit better than today, but the realization that one can also bring one to despair. Readmore…
Mrs. Merkel's chastity is not our
January 13th, 2012
St. Augustine of which the wonderful sigh comes from: “Lord, give me chastity, but not equal,” was not a “strange saint.” He knew only from the interplay of virtue, self-restraint and temptation. Like all intellectuals of the ancient world he knew the myth of Odysseus, who anticipates his own weakness and can be tied to the mast in order to be able to resist future temptations. Readmore…
Declared dead really live longer?
A requiem for the €
January 12th, 2012
“If the joint account in the restaurant by the number of diners shares, then each ordered lobster and beef tenderloin.”Everywhere in Europe, the credit-financed party ends. The financial hangover is large, economic disillusionment is spreading in Southern Europe more than anywhere else. Readmore…