A guest commentary by Henry Kaspar Kantoos‘ and my articles on whether insolvency or illiquidity concerns are driving the euro crisis have provoked a number of reactions, both here and in other blogs. This is an attempt to reply to the main criticisms and counter-claims. 1. „As long as there is liquidity, solvency does not really matter“ This is Ryan Avent’s …
Monthly Archives: February 2018
A guest commentary by Henry Kaspar [with update] Paul Krugman and other commentators are singing the euro’s swan song, treating the disorderly break-up he euro area as a quasi fait accompli. Moreover, Krugman writes a first draft for the history books: Let’s just say that the euro was an inherently flawed idea that can work only given a strong European economy and …
Eine kurze Reaktion auf die EZB-Entscheidung. Natürlich bin ich froh, dass Draghi sich als pragmatischer herausstellt als ich gedacht hätte und sich nicht scheut zu zeigen, was Trichet für einen Unsinn dieses Jahr mit zwei Zinserhöhungen fabriziert hat. Was mich aber wieder irritiert (um mal freundlich zu bleiben), ist die Reaktion der deutschen Presse. Hier …
I dare to do so again: take issue with a hypothesis by Paul Krugman. In his much cited article „there is a hole in the bucket“ Krugman identifies the following as the main pitfall of the euro area – and the main explanation for its crisis: Think about countries like Britain, Japan and the United States, which have …