Monthly Archives: February 2018

The Irish Lesson, or: it’s Competitiveness, Stupid!

A guest commentary by Henry Kaspar Ryan Avent, economics correspondent for the Economist, has written a puzzling reply to our host Kantoos in which Avent insists on blaming (mostly) Germany for the lack of a solution to the euro crisis. Puzzling is thereby less the blame, but the disconnect between Avent’s nuanced analysis of the crisis in the article’s first part …

You are neither dumb, nor stupid, Paul…

  The „illiquid but solvent / self-fulfilling“ (SF) argument says that when solvency concerns lead to rising yields, this in turn undermines the sustainability of the debt, leading to yet another increase in yields, etc. Solvency concerns (or speculation in this direction) become self-fulfilling in this case. This argument is intuitive and under certain assumptions correct. Karl …

Die Drachme ist Silber, der Euro ist Gold?

Die griechische Volksabstimmung zeigt einmal mehr, dass man mit Bankenrettungen (was die ganzen Rettungspakete de facto sind) und Sparmaßnahmen allein nicht weit kommen wird. Es sind kreative Lösungen gefragt. Umso interessanter ist es zu lesen, was Harold James zur Geschichte von Parallelwährungen zu sagen hat: One of the possibilities raised in the discussions on monetary union in …