Germany

Debt deflation is taking hold in Europe. We have seen the crash in Greece's economy unfold over the last two years. And now we are witnessing similar things in Spain. As Marshall Auerback puts it, Spain is the New Greece. But now come signs…

This week's newsletter will focus on Europe again as this morning the European summit has produced significant changes in European economic policy. Spanish Prime Minister Rajoy and Italian Prime Minister Monti threatened to 'block…

I was on RT's Capital Account on Monday afternoon, talking about the euro crisis yet again. The video is below but I have a few comments before you watch it. In the video, I say Europe can continue dithering for quite a while. There is…

This week I am doing the weekly newsletter in two parts, both outside the paywall. This is part one. As Charles Wyplosz has recently written, the euro zone's rescue strategy adopted in May 2010 has failed. Like his column, this column…

My view is that the euro zone sovereign debt crisis will end in a combination of monetisation, breakup or default. Let's review why.

Hans-Werner Sinn is the sometimes controversial head of Germany's Ifo Institute, A German-based center for economic studies. He has been in the news for his warnings about the Target2 system at the heart of trans-national money clearance in…

It is clear that Greece will be unable to hit their deficit targets. According to Die Zeit, Greece is already lagging on tax revenues and privatization proceeds. This is why the German government is already debating relaxing Greece’s…

In late April, I wrote a post predicting why the EU is temporarily dropping the 3% hurdle. The gist of the post was that in the euro zone and in Europe more generally, the economy was decelerating much faster than anticipated. To get ahead…

Charles Kindleberger’s classic book on the Great Depression was originally published 40 years ago. In the preface to a new edition, two leading economists argue that the lessons are as relevant as ever.

The focus recently has all been on the Eurozone periphery, but signs of strained financial conditions are now showing up in German sovereign CDS. The spread has been steadily rising.