Tag Archives: euro

The Flawed Euro


A fundamental flaw in the initial design of the euro made it unlikely that it could ever succeed and the determination to continue with economic policies, particularly in response to the global financial crisis, have made recovery from that crisis more difficult. A single monetary policy dictated by and serving the needs of the most powerful parts of the European economy, would be less appropriate for weaker parts of the European economy. The Greeks believed that their membership of the euro-zone was the entry ticket to the prosperity that the stronger members enjoyed. Encouraged by the apparent guarantee of support from those stronger members to take advantage of the asset inflation created by easy Europe-wide credit, ignoring the potentially damaging concentration of productive capacity in Europe’s industrial heartland that a single economy made inevitable.  In the longer term, when the periphery of the wider European economy began to slow down – even to close down – this was bad news even for the central core, whose markets would be less buoyant and whose obligations to weaker members would be likely to increase – because the euro would eventually handicap the whole European economy. Read more of this post

EUmenides


Not only a tragedy for Greece but a Greek Tragedy. The Eumenides appear in the final part  of  The Orestian Trilogy, a Greek tragedy  written by Aeschylus  around 500BC.  The Eumenides was a euphemistic name given by the Greeks to the Erinyes (Furies:Latin).  Eumenides means ‘the benevolent ones‘ and was a term used by the Greeks to avoid invoking the wrath of  the Erinyes (the avengers of wrong).

Greek Tragedy is a literary composition in which a central character, acting as the tragic protagonist or hero, suffers some serious misfortune which is not accidental thus rendering it meaningless, but is logically connected with the central character’s actions. Greek Tragedy stresses the vulnerability of human beings whose suffering is brought on by a combination of human and divine actions, but is generally undeserved with regard to its harshness.

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From Greek fable to Greek myth


Greek economist Yanis Varoufakis writes for Channel 4 News about why the Euro crisis should not simply be seen through the prism of a famous Aesop fable. Read more of this post

Dinner for One (Euro-style)

Euronomics


There is a view (especially in France) that the enemies of the Euro are the AS (Anglo-Saxons).  In my opinion this is not so.  I do not believe the AS are against the Euro but, in common with the Austrian School of Economics,  they are against its inherent flaws. As   points out in his article ‘The French Don’t Get It.  The French government just doesn’t seem to understand the real implications of the euro.   French officials apparently don’t recognize the importance of the fact that Britain is outside the eurozone, and therefore has its own currency, which means that there is no risk that Britain will default on its debt.  By contrast, the French government and the French central bank cannot create euros.  There is a second reason why the British situation is less risky than that of France. Britain can reduce its current-account deficit by causing the British pound to weaken relative to the dollar and the euro, which the French, again, cannot do without their own currency.  The eurozone fiscal deficits and current-account deficits are now the most obvious symptoms of the euro’s failure. But the credit crisis in Europe, and the weakness of eurozone banks, may be even more important. The persistent unemployment differentials within the eurozone are yet another reflection of the adverse effect of imposing a single currency and a single monetary policy on a heterogeneous group of countries.  These comments may be valid but in making the ‘French connection’, either Feldstein hasn’t been following recent European events very well, or he simply doesn’t understand the nature of the Anglo/French relationship, which is based on mutual distrust. Read more of this post

Dredging for the Euro


My post with the title Euro spivs? condensed an article by Marshall Auerback writing on the blogspot New economic Perspectives in which he claimed that the markets are again in free-fall. While Auerback clearly intended to name Mario Draghi as the bête noire of his article, Draghi is perhaps a bit player in it. The article is really in two parts; in Euro spivs? Aureback is critical of the democratic deficit within the EU, specifically with regard to the Franco German handling of the economic crisis facing the euro in forcing fiscal austerity on Eurozone members.  In this the second part of Auerback’s article, he expresses the view that such fiscal austerity is counterproductive, especially for Italy, while offering a fiscal Keynesian solution.  Needless to say, Mario Draghi, the chairman of the European Central Bank (ECB) remains a figure in this. Read more of this post

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Martin Widlake's Yet Another Oracle Blog

Oracle performance, Oracle statistics and VLDBs

The Land Is Ours

a Landrights campaign for Britain

The Bulletin

This site was created for members and friends of My Telegraph blog site, but anyone is welcome to comment, and thereafter apply to become an author.

TCWG Short Stories

Join our monthly competition and share story ideas...

Public Law for Everyone

Professor Mark Elliott

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