The German government remains under attack for not “taking leadership” in the Euro crisis. This rests on the assumption that a known solution is ready to be implemented, but the German government just refuses to accept it. That is wrong. How many times have you witnessed people changing their opinion about the Euro crisis, while being very confident …
Der Herausgeber der FAZ, Holger Steltzner, schreibt in seinem Kommentar „Der Politik zu Diensten„: In Großbritannien … ist das Inflationsgespenst zurück, in den Vereinigten Staaten und anderen Staatsschuldensündern wird Inflationierung als politisch bequemer Weg zur Entschuldung auf Kosten der kleinen Leute wieder salonfähig. Auch in Euroland erhalten diejenigen Zulauf, die eine (nur) kleine Steigerung der …
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 …
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 …