It is very difficult to have a dry island in a severely over-flooded region. Germany’s economy is strongly dependent upon exports and nearly 44% of her export are to other EU countries. If the economies of EU countries like Greece, Spain, Portugal, Italy etc. get in trouble then to expect that Germany will remain unaffected…
Paul Krugman has termed the new policy shift of UK’s Chancellor of the Exchequer, George Osborne, as the crony Keynesianism. UK government is trying to build a euro crisis shield and is trying to find an alternative way to ease the pressure on it to do something constructive. But Chancellor George Osborne in particular remains…
I have been reading and thinking a lot lately about the euro zone financial crisis, mainly because I think that it is holding the world economy in check and by extension the global financial markets. I have read many news articles and commentaries by economists, financial experts and reporters. Recently, I came across a Martin Wolf blog…
For the first time since November 2008, the People’s Bank of China has cut the key lending rate by 25 basis points. “The changes indicate mounting concern in Beijing over slowdown of growth,” said Credit Agricole CIB economist Dariusz Kowalczyk in a report. Like other emerging economies, the Chinese economy is also feeling a drag and…
Paul Krugman thinks that by doing nothing, ECB is destroying the euro and is trying to put itself out of business. Oh, and survey data suggest that the euro area economy is really plunging now, plus Spain is on the brink. What about inflation? It’s falling fast — which is a bad thing under the circumstances. I…
Professor Ken Rogoff, Professor of Economics at Harvard University, writes in Project Syndicate that both Keynesians and Austerians have got it wrong. One extreme is the simplistic Keynesian remedy that assumes that government deficits don’t matter when the economy is in deep recession; indeed, the bigger the better. At the opposite extreme are the debt-ceiling absolutists…
The villagers of indomitable Gauls had superhuman powers thanks to the magic potion brewed by their druid, Getafix. Those Gauls were supremely confident in resisting the mighty Roman Empire and repeatedly trouncing its powerful armies. Their biggest fear was that the sky will fall on their heads. The country of USA also has ‘super-economic’ powers.…
For very long Paul Krugman, the Nobel laureate columnist of New York Times has been insisting that the current economic problem in the US is due to persistent unemployment rate. He has been critical of Federal Reserve and its chairman Ben Bernanke because Krugman says that they are so pre-occupied with the fear of inflation and…
Before the last election, George Osborne, the Chancellor of the Exchequer, had trumpeted the endorsement of Richard Branson. But now Branson is calling for a rethink of his policies: In an outspoken intervention, the founder and chairman of the Virgin Group called for a renewed focus from ministers on bringing unemployment down and promoting the…
This article is part of a syndicated series about deflation from market analyst Robert Prechter, the world’s foremost expert on and proponent of the deflationary scenario. For more on deflation and how you can survive it, download Prechter’s FREE 60-page Deflation Survival eBook, part of Prechter’s NEW Deflation Survival Guide. The following article was adapted…