My article this week will be of a special kind. It is a dossier rather than an article and it will focus on a macro topic that has been in the news lately rather than a deep dive on a specific listed or private company.
Good write up. You should also consider how there is no longer a strict consumption limit within the Eurozone due to the lack of an exchange rate. Therefore no hard budget restricition applies anymore to EMU member state - TARGET 2 balances being the thermometer of how bad allocation works.
So not only does inflation differencials lead to real wage asymetries but also no counter mechanism besides consumption repression remains an available policy tool to safeguard competitiveness.
Very good said!The whole Euro project is a
failure from the beginning.
Good write up. You should also consider how there is no longer a strict consumption limit within the Eurozone due to the lack of an exchange rate. Therefore no hard budget restricition applies anymore to EMU member state - TARGET 2 balances being the thermometer of how bad allocation works.
So not only does inflation differencials lead to real wage asymetries but also no counter mechanism besides consumption repression remains an available policy tool to safeguard competitiveness.