Dave Graham Archive

Re: Eurozone to stick to their budget rules

[Skip to the end] This will keep a lid on euro aggregate demand in the eurozone for a while as budget deficits grow due to falling revenues and increasing transfer payments. Larger national deficits are needed to sustain output and employment, but also add systemic risk due to their peculiar institutional structure. ...Read More

Reuters: German surplus

[Skip to the end] Wrong time for tight fiscal from a macro perspective, and contributed to the subsequent slowdown, but as a credit sensitive entity they are compelled to go in that direction. It’s one of those darned if you do and darned if you don’t. German budget surplus seen at 7 ...Read More