Political Economy

The escalation of the European debt crisis and mounting evidence of new economic contraction has increased the scrutiny on the region. Yet it seems like many observers may be failing to grasp several important points, including the nature…

Sources close to the German government have told Reuters that the German Chancellor Angela Merkel is seeking agreement to make changes to the Lisbon Treaty, considered the European Constitution. According to Reuters’ sources, Merkel wants…

My friend Lars Schall sent me this link. I think you have to put this in context by looking at what Der Spiegel was saying about a Greek exit. What is clear is that the taboo that Angela Merkel broke in responding to the proposed Greek…

Well folks, we live in a creditor friendly-world. And the taxpayers are always going to be the ones taking the hit unless the credit system collapses under its own weight. That’s what Omid Malekan seems to think too. His video below…

The country is now suffering a second round of economic and financial distress stemming from the collapse of its banking system in October 2008. That crisis caused a huge loss of savings not only for domestic citizens but also for…

This sounds like hearsay to me, but I wouldn’t be telling you about it if I didn’t believe it was credible.

Paul Krugman show he understands the sovereign debt crisis.

This is what American education now feels like

As for Italy itself, the country runs a primary fiscal surplus. As George Soros has noted: “Italy is indebted, but it isn’t insolvent.” Its fiscal deficit to GDP ratio is 60% of the OECD average. It is less than the euro area average. Its…

Germans really are sceptical of the euro and many miss the days of the Deutsche Mark. I think Merkel is trying to make the case for why the German people have never been given a direct vote on any major euro area decision. No one wants…