Italy has three options: 1. exit the euro zone and devalue the currency; 2. remain in the euro zone and devalue salaries. 3. go for Japan-like decades-long slow growth with stagnating wages, but also with falling inflation and (positive news!) falling bond yields.
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Tag Archive: Northern Euro
Why it Makes Sense to Exit the Euro Zone in Times of Balance Sheet Recessions
Italy will follow Japan for decade(s) of balance sheet recession. There is one mean to avoid it. The periphery should use current positive market sentiments and low inflation to exit the euro zone.
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The Transfer Union from South to North since 2008: Wolfgang Schäuble, the Evil Genius of the Euro Crisis
Wolfgang Schäuble has become the evil genius of the euro crisis. He has understood that the Cyprus crisis won't lead to a bank-run and collapse of capital markets. We all know that the US is now recovering.
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Ways to the Northern Euro
Two ways for building the Northern euro, exit of Southern members or slow creation of Northern euro with currency interventions of central banks.
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Who Says No to Austerity and Global Imbalances, Must Say Yes to the Northern Euro
Eventually the euro will be abolished, a Northern Euro introduced: politicians and their economic advisors might just be waiting for a calm moment, especially with upcoming German inflation.
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About the Impossibilities of the Common-Currency-Recession-Austerity Cycle
Charles Wyplosz, Professor of International Economics, Graduate Institute, Geneva repeats our arguments in "Who says No to Austerity, Says Yes to the Northern Euro" about the impossibility of getting out of the common currency - recession - austerity - cycle. Similar as we do, he proposes a public...
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4 Different Solutions for the Euro Crisis: Can it Be the Northern Euro? A Discussion
The discussion about the future of the Euro: Among a Post-Keynesian, a European Etatist, an Austrian economist and an advocate of a Northern Euro on the French website www.atlantico.fr. The French paper is asking: “Sommet européen : créer un euro du Nord est-il le seul moyen de sauver l’Europe de l’austérité ?” Is the creation of …
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Unicredit: Both Italy and Britain Should Play in the Southern Euro League, Germany in the Northern
The must read "Italy is a better bond bet than Britain" on the Financial Times. Unicredit CEO Nielsen implicitly confirms our latest post on global and European imbalances that can be solved only with a Northern...
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8) Euro Crisis and Euro Macro
We are currently looking for a curator that takes over the euro macro category. The Euro Crisis and its Reasons, details and chronology, German economists ,Eurobonds, fiscal or banking union,Who Says No to Austerity, Says Yes to the Northern Euro Ways to the Northern Euro
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Spread Swiss Eidgenossen vs. German Bund to see further gains
The spread between the Swiss government Eidgenossen bond against the Germany 10yrs. Bund will see further gain in the future, after the Euro summit opened the door for ESM direct financing of banks. Differences between EFSF and ESM explained
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The Northern Euro introduction: A retrospective from the year 2030
A retrospective from the year 2030 on two decades of failed european integration policy and 10 years of successful disintegration policy The following essay shows that currency regimes come and go over the time. Nothing is stable with the time, especially the use of a currency. What has never happened in history is the use …
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Why the Euro Crisis may last another 15 years
Abstract In the following article we will explain which types of crisis occur in the euro area and will argue that this crisis will last at least another fifteen years. (1) Competitiveness crisis: Before the euro introduction peripheral countries regularly saw their currency depreciate against the German Mark and helped them to increase their competitiveness. …
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