internal devaluation

German Finance Minister Wolfgang Schaeuble told reporters in Brussels today (Monday) that getting their deficits down was “the only task that everyone has to fulfill for himself and for the common good.” Meanwhile, over in New York, Paul…

As in 2008, when global financial institutions were under attack, we are now facing a solvency crisis. This time the issue is Eurozone sovereign governments.  Make no bones about it, the EU's trillion dollar gambit has worked and a…

Edward does a nice job to sum up the flurry of the past week which saw the ongoing problems in Greece elevated to a full fledged systemic crisis in the Eurozone economy which, if it ultimately blows, will have ramifications far beyond the…

In reading Scott Sumner’s take on the China currency peg dilemma, I see that both he and Paul Krugman hit on the fundamental problem in the debate: reserves. Everyone is talking about the peg as if relaxing the peg will be the magic bullet…

Popular myth and, allegedly, the laws of aerodynamics have it that the bumblebee should not be able to take flight. Yet still, our good bumblebee refuses to be pulled down by such details and year after year it takes flight as if nothing…

Well, I for one can’t help thinking that it’s now well time we all stopped getting carried away with the use of so many acronyms. Not only may one man’s meat easily prove to be another’s poison, it may even be that for some the entire meal…

This post was originally published at A Fistful of Euros. “Doom-mongers” - the Economist tells us - “are licking their wounds”. And why exactly are they licking their wounds? Well for two years now (apparently) they have been telling us…

This post originally appeared at Global Economy Matters. The Eurozone's current problems are not mainly a result a of profligate and reckless spending of government resources in the Eurozone periphery . Even Nobel laureate Paul Krugman…

This post was originally published at A Fistful of Euros. A new kind of battle is going on out there at the moment. In what must surely be a new twist to the old dialectic of blow against blow argument, a combination of the internet age…

This post was originally published at A Fistful of Euros. Well, as we say in English, it never rains but it pours. Latvia, which has had the deepest recession of all 27 European Union member states, contracted by nearly 18 per cent in the…