Since his resignation is overwhelmed Bundesbank President Weber of the German press with criticism. He had good chances to become President of the ECB and the Federal Government was stabbed in the back. This criticism is unwarranted, because it is based on false assumptions.Early in the second half of January it was reported from Paris that the French leadership of Weber's appointment would agree under any circumstances. Readmore…
The European Council has decided now but a permanent mechanism for financial assistance to Member States of the Euro zone. In the spring it was still called a rescheduling of Greece must be prevented because some banks, the crisis had not yet been entirely overcome. Statistics on Greek government bonds held by German and other banks were presented, and the “bailout” was explicitly limited to three years. Readmore…
They are again: two economic camps, irreconcilably opposed to each other and promote diametrically opposite policy recommendations. As early as the fiscal policy re-monetarism controversy of the past century is a more Keynesian direction of market-oriented process, that is, a mechanism of action compared to the competitive pricing trusting position. Readmore…
Are faster than expected investment in Germany after the crisis has risen again. The last year already incipient recovery in external trade, the investment in this country – how often in earlier times – suggested strong.In Germany, by the strong and broad-based recovery by now been made good strong ground. Readmore…
For one you can really admire Paul Krugman: his talent, same old theories without self-doubt in ever new variations, with great success among the people to bring. I'm really envious of his ability to find ingenious title. My favorite is categorical “Why Germany Kant competencies” of July 1999. Readmore…
The bail-out of Greece € follows a subsidized loan for Ireland. The images are similar, but behind it hides three important differences.First went the Irish budget deficits – very different than the Greek – before the financial crisis almost never beyond the three percent limit. Instead, Ireland has been badly hit by the financial crisis particularly severely because its banking sector is very large relative to the rest of the economy and relative to its equity capital suffered particularly heavy losses. Readmore…
The history of European monetary union is of intense rhetoric about the stringency of fiscal discipline accompanied, without which such a union could not be stable. In this sense, it has developed sustainability criteria and calculated viable primary balances, debt limits are defined and differentiated, it has obliged the states to annual reports, stability and threatened them with sanctions. Readmore…
Who The word “chips” think of potato chips that will be remembered with the word “chips” is also on the misconduct of many consumers who use their freedom of choice of food in a way that is not conducive to their health. It would not be surprised if we would soon find other regulations that limit the consumption of potato chips. Readmore…
Beginning of the year has been much written about a credit crunch that would lie ahead of Germany and the company could stifle the impending growth. Great efforts were called for government action, discussed and implemented individual action too. Consider for example the appointment of a mediator by the federal government credit, various loan funds, KfW-mediated guarantees, indemnities, and state support for credit insurance. Readmore…
Finance Minister Schäuble remains undeterred. As early as 1990, when he negotiated against the advice of almost all economists as chief negotiator for the German monetary unification the disastrous exchange rate of 1:1 and defended, it is also now self-assured over the fact that his plans for a bail-out of Greece from the overwhelming majority of economists are rejected. Readmore…