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The obvious model for this is the USA. Boom states become bust states, waves of "internal" migration are common and ongoing.

Language and culture are fast losing their strength as barriers, especially as the target population are young and well-educated.

Is this/will this become a significant factor in re-balancing the Eurozone's internal economic tensions? The backwater-ization of the regions providing the emigrants is a danger.

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II

by eurogreen on Tue Jan 25th, 2011 at 06:31:17 AM EST
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The consequence of such migratory flows is deflation in Spain, which makes Spain's debts to Germany even harder to pay in nominal terms as Spain's nominal GDP contracts.

So you still need fiscal transfers...

Keynesianism is intellectually hard, as evidenced by the inability of many trained economists to get it - Paul Krugman

by Migeru (migeru at eurotrib dot com) on Tue Jan 25th, 2011 at 06:38:35 AM EST
[ Parent ]
Yes, and as Krugman reminded us, the US does fiscal transfers.
by afew (afew(a in a circle)eurotrib_dot_com) on Tue Jan 25th, 2011 at 08:30:36 AM EST
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And Germany within itself.

Keynesianism is intellectually hard, as evidenced by the inability of many trained economists to get it - Paul Krugman
by Migeru (migeru at eurotrib dot com) on Tue Jan 25th, 2011 at 08:54:45 AM EST
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