Tuesday, January 7, 2014

More Eurogloom

The Times, too, takes a rather pessimistic view of the Eurozone. In regard to comments on the previous post, I agree with Jurnan that Frédéric's point regarding improved current account balances is to be treated cautiously, since the improvement mainly reflects decreased demand due to budgetary austerity and internal deflation rather than an actual rebalancing of competitiveness. To Siegfried I simply say that I do not believe economic nationalism is a solution for France or any other European country. Rather, it is a formula for steady decline. It is also likely to exacerbate internal political tensions within Europe. And, needless to say, I do not admire either of your two political options, the DLR or the FN.