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"(The) asset management and investment banking subsidiary (of French bank PBCE) Natixis, released a zinger of a study designed to influence policy. It's titled, "On a purely macroeconomic basis, Germany should leave the Eurozone." Germany should get out of the way so that the remaining countries can devalue in a big way what would remain of the euro. France, Italy, Spain, Greece, etc. have always done that, one way or the other, before the euro took that nifty tool of sudden money destruction away from them. It would be the ideal solution for France. After conceding that there may be non-economic reasons to form a monetary union, the report lays out five reasons why Germany needs to exit. But it offers an alternate solution: if Germany wants to stay, it needs to pay.
Germany should get out of the way so that the remaining countries can devalue in a big way what would remain of the euro. France, Italy, Spain, Greece, etc. have always done that, one way or the other, before the euro took that nifty tool of sudden money destruction away from them. It would be the ideal solution for France.
After conceding that there may be non-economic reasons to form a monetary union, the report lays out five reasons why Germany needs to exit. But it offers an alternate solution: if Germany wants to stay, it needs to pay.
The five reasons:
Interesting that we should only hear of it thanks to an American commentator.
wouldn't increased profits balance out the inflation (if there is any)?
isn't there pressure on the ECB to play nicer with the PIIGS from german export industries?
otherwise growth in the EU is being blocked by the fears of a few german savers that their hoard will lose a few percent in value, right?
how did they get so much power over the rest of our fate? 'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty
ok then... 'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty
Foreign direct investment wouldn't cut it because it would still contribute to Germany's current account surplus (if I'm nt mistaken) but it would be better than nothing. A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
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