World News Insights
1-3 Minute Gist
Search, personalize, or simply browse. Follow the world around you from gist and context to insights.
Who we are | Our Credo | Ways of using Lyrarc | FAQ | Send Feedback | First Letter From the Editor
Sign up. It's free and easy to use
Create an account
to personalize your feed of articles and topics.
All Topics Article
Euro Zone Death Trip
Keywords:
Krugman is critical of ECB president Trichet's decision to raise interest rates in 2010, because of the way it affects Spain, Italy, and Portugal. Increase in interest rates by the ECB affect the entire eurozone and this means, he points out, that inflation in Germany would be extremely low -about 1% for the next five years- and the result being that inflation would be much lower in debtor countries like Spain. A decrease in interest rates with inflation at 3-4 % in Germany would be better for the debtor countries (Spain, Italy, Portugal, Ireland) as this would enable them to cut prices and costs relative to Germany and other creditor countries. The first step taken by the new ECB president, Mario Draghi, was a small increase in interest rates. Krugman asks if the private demand is affected negatively by the end of a debt financed boom in the debtor countries, and austerity programs reduce any growth in the public sector, then where are the new jobs supposed to come from? A policy that reduces the prices of the products of debtor countries relative to creditor countries like Germany- so that exports can generate necessary growth- is needed says Krugman.
Higher German inflation as a way to improve the competitiveness of other eurozone countries in 2012-2015
09/25/2011
Higher German inflation would provide a safety valve in the absence of the ability of countries in the eurozone to devalue their currencies to improve competitiveness.
Grouped Articles
New York Times 09/25/2011
Euro-Zone Inflation Returns to Record Low
Wall Street Journal 02/02/2014
Europe Moving Toward Small Steps to Promote Growth
New York Times 05/10/2012
Euro Zone Edges Closer to Deflation
Wall Street Journal 03/29/2014
Ultralow Inflation Hits Europe in Different Ways, Complicating Fix
Wall Street Journal 11/05/2014
The Upside of Europe’s Ebbing Inflation
Wall Street Journal 12/03/2014
Inflation in Germany- 2011-2014
04/28/2011
Grouped Articles
New York Times 09/25/2011
Europe's Easy-Money Policy Snubs German Savers
Wall Street Journal 11/25/2013
Euro-Zone Inflation Returns to Record Low
Wall Street Journal 02/02/2014
Europe Moving Toward Small Steps to Promote Growth
New York Times 05/10/2012
Euro Zone Edges Closer to Deflation
Wall Street Journal 03/29/2014
Eurozone Inflation Continues Its Slide
New York Times 07/31/2014
Lack of competitiveness in the economy of Greece
01/29/2011
Grouped Articles
New York Times 09/25/2011
In Greece, a Brewer's Dream Runs Into Frustration
New York Times 01/29/2011
Gap in Competitiveness Weighs on Europe, Analysts Say
New York Times 01/15/2012
Greek Premier Is Tested in Impasse Over Pay Cuts
New York Times 02/03/2012
Wall Street Journal 02/14/2012
Germany's Inflated Fear of Inflation
Wall Street Journal 02/14/2012
The effects of a declining Euro on competitiveness and exports of Ireland, Italy, Spain, France and Germany
01/08/2009
Grouped Articles
New York Times 09/25/2011
New York Times 11/03/2013
Germany's Secret Economic Weapon: a Vast Export Network
Wall Street Journal 11/19/2013
Euro Displays Uncommon Strength
Wall Street Journal 12/06/2013
Germany Propels Growth in Euro Zone
Wall Street Journal 08/14/2010
Spain Plans to Burn Its Bridges to Keep Vacationers on the Job
Wall Street Journal 02/08/2012
Why government fiscal discipline alone will not establish a sound financial framework for the Euro currency- the example of Spain
03/03/2010
Spain kept its deficits below the 3% mandated under EU treaties, till recently. Asset bubbles sustained because of bad lending by a country's banks and easy acess to credit from outside the country, are two problems not addressed by tighter budget controls in the revised rules being set after the Dec. 9 EU Summit. Spain's debt problem is to recapitalize these failing banks and debt of regional governments. Spain relied too much on a construction boom for growth, with productivity stalled. Ireland improved competitiveness and attracted foreign investment. This too unraveled in the face of an asset bubble from speculative lending by its banks.
Grouped Articles
New York Times 09/25/2011
Wall Street Journal 03/03/2010
German Optimism Depends On Spanish Deficits
Wall Street Journal 09/25/2013
Euro Zone Deficit Hits Target for First Time Since 2008
New York Times 04/23/2014
Spain's Example Shows Limits of EU Targets
Wall Street Journal 12/09/2011
The Euro Zone's Double Failure
Wall Street Journal 12/15/2011
European Central Bank interest rates adjustments 2011-2013
03/04/2011
ECB interest rate adjustments and monetary policy.
Grouped Articles
ECB Moves Markets, Not Economy
Wall Street Journal 05/03/2013
New York Times 09/25/2011
ECB Struggles With Low-Altitude Flying
Wall Street Journal 11/10/2013
Shares Rise on Wall Street and in Europe
New York Times 06/06/2012
Wall Street Journal 03/04/2011
European Central Bank Raises Rates as Expected
New York Times 07/07/2011
Improvements in current account deficits of Ireland, Portugal and Spain and the Rebalancing moves in the European Union
09/25/2011
The sharp decline in imports and the improvement in exports in Ireland and Spain is providing a ray of hope for the needed rebalancing of economies in Europe. This would not put the entire burden of the rebalancing on falling wages. Greece is an exception because of falling imports and exports as a result of the widespread economic dislocation.
Grouped Articles
New York Times 09/25/2011
Ireland Makes Moody's Less Blue
Wall Street Journal 09/23/2013
German Optimism Depends On Spanish Deficits
Wall Street Journal 09/25/2013
Portugal's Shoemakers Bet on Quality
Wall Street Journal 03/08/2014
Euro Zone Deficit Hits Target for First Time Since 2008
New York Times 04/23/2014
Portugal on Road to Recovery Post-Bailout, But Scars Remain
Wall Street Journal 07/20/2015
Boost for eurozone exports from a weaker euro in 2012-2016
09/25/2011
Economists estimate the lower value of the euro against the dollar and other currencies will boost economc growth in the eurozone by half a percentage point. Ireland, Portugal, Spain and France will benefit from the lower exchange rate for the euro in 2012-2014.
Grouped Articles
New York Times 09/25/2011
After a Recession in Portugal, the Tiny Green Fruits of Success
New York Times 08/28/2013
Euro Displays Uncommon Strength
Wall Street Journal 12/06/2013
Weak Export Growth Raises Prospect of Currency Moves
Wall Street Journal 10/06/2014
Dollar Surges to 11-Year High Against Biggest Rivals
Wall Street Journal 01/04/2015
Weaker Euro Ripples Around World
Wall Street Journal 03/13/2015
Portugal's exports 2012-2014
03/25/2011
Grouped Articles
New York Times 09/25/2011
Idea of Euro Exit Finds Currency in Portugal
Wall Street Journal 05/27/2013
After a Recession in Portugal, the Tiny Green Fruits of Success
New York Times 08/28/2013
Portugal's Shoemakers Bet on Quality
Wall Street Journal 03/08/2014
Buoyed by Exports, Portugal Chooses Clean Exit From Bailout
New York Times 05/04/2014
Portugal on Road to Recovery Post-Bailout, But Scars Remain
Wall Street Journal 07/20/2015
Krugman on the economy in Spain and Italy
09/25/2011
Grouped Articles
How Righteousness Killed the World Economy
New York Times 10/12/2014
New York Times 11/30/2014
New York Times 09/25/2011
Culture Built on Family Firms Tests Italy's Plan for Growth
Wall Street Journal 11/14/2011
Election Is Unlikely to Cure Spain's Pain
Wall Street Journal 11/16/2011
Spanish Vote Heralds More Austerity
Wall Street Journal 11/18/2011
The perverse effects of increasing sales taxes and value added taxes in Spain and Portugal on inflation
09/27/2010
Higher inflation in Spain and Portugal with higher sales taxes and lower inflation in Germany and France is likely to prolong a recovery.
Grouped Articles
New York Times 09/25/2011
Portugal's Government Thrust Into Turmoil
Wall Street Journal 07/03/2013
Hollande Boosted by French Growth
Wall Street Journal 08/15/2013
Economic Report Supports Socialistsâ Policy in Portugal
New York Times 09/27/2010
Euro-Zone Inflation Returns to Record Low
Wall Street Journal 02/02/2014
Spain's New Tax Crackdown Makes It Personal
Wall Street Journal 02/09/2013
A warning light for Greece to exit the eurozone and return to the drachma to restore competitiveness and growth 2011-2012
05/26/2010
Greece needs to lower prices by 31% just to get to the level of Turkey, says the head of the Ifo research institute in Germany, Wener Sinn. Experts fear a breakdown in civil order inside Greece if deflation at this level occurs with Greece still using the euro. Hollande, the Socialist party candidate in France, also expressed similiar concerns, as reported in the New York Times, calling it a breakup in European governance that followed the breakdown in Greek governance. Sinn says the bondholders are overly exaggerating the risks of a breakup in the eurozone if Greece exits the euro.
Grouped Articles
Germany reaps rewards of entitlement cuts - The Washington Post
Washington Post 09/20/2011
New York Times 09/25/2011
New York Times 05/26/2010
New Attempt at French-German Amity Stumbles in Venice
Wall Street Journal 08/21/2013
German Election Overturns Political Order
Wall Street Journal 09/23/2013
Departing EADS Chief Urges Europe to Recommit to Industry
New York Times 04/12/2012
Needed wage adjustments in the absence of devaluation and competitiveness of Greece
09/25/2011
Grouped Articles
New York Times 09/25/2011
Americanized Labor Policy Is Spreading in Europe
New York Times 12/03/2013
Europe's Surprise Rebalancing Act
Wall Street Journal 03/02/2012
Amar Bhidé: In Praise of the Beleaguered Euro
Wall Street Journal 05/07/2012
Greeks Brace for More Pain on Wages
Wall Street Journal 07/19/2012
The focus on competitiveness by economists, credit ratings agencies, and European leaders as austerity measures alone won't work
02/05/2011
Mario Monti focusses on the need for investing in the economy in an interview with German newspaper Die Welt during a January 2011 visit to Berlin. S&P economists and Nobel winner Stiglitz also emphasize this after a downgrade of France's credit rating- the need for improved competitiveness for the economies of France, Spain Portugal and Italy.
Grouped Articles
New York Times 09/25/2011
Wall Street Journal 05/29/2013
The Next First (and Only) 100 Days
New York Times 12/10/2011
A Proud Nation Ponders How to Halt Its Slow Decline
New York Times 08/24/2013
After a Recession in Portugal, the Tiny Green Fruits of Success
New York Times 08/28/2013
France Says It Will Miss Budget Deficit Targets
Wall Street Journal 09/12/2013
Mario Monti's Labor Minister Elsa Fornero and changes to Italy's labor laws
06/24/2011
Elsa Fornero says Italy is not a place where people follow the rules, and there is a strong tendency to rig the system to tweak it in different places to benefit different groups. The last 10 goverments have failed to tackle the Workers Law put in place after the Second World War, which is out of place in today's economy. Which is why the changes she has made are so significant for Italy to regain its competitiveness and its potential, and modernize its economy. This is also one of the major positive outcomes of the current eurozone crisis. Spain has launched a similiar effort. It involves a culture change which would increase productivity and investment. It also shows that while the Merkel Christian Democrats may need to adjust the austeity programs to promote growth, some of the structural changes pushed in Europe including the formation of the Monti government are finally on the right track.
Grouped Articles
New York Times 09/25/2011
Departing EADS Chief Urges Europe to Recommit to Industry
New York Times 04/12/2012
Italy Official Seeks Culture Shift in New Law
Wall Street Journal 06/27/2012
Transcript: Italy's Labor Minister On Reforms
Wall Street Journal 06/26/2012
Italy Approves Labor Law Overhaul
Wall Street Journal 06/27/2012
Avoiding an Italian Bailout Isn't Just About the Numbers
Wall Street Journal 07/12/2012
Allan Meltzer's soluton for the financial crisis facing euro currency countries Portugal, Spain, Italy, Ireland and Greece
05/26/2010
Meltzer says a new currency union should be setup for the northern countries France, Germany, and others who commit to financial discipline and fiscally binding arrangements. The euro currency countries such as Italy and Greece should devalue their currency to fix gaps between wages and productivity in their countries. At a later stage these countries could be readmitted to the new currency union under strict fiscally binding arrangements with enforceable sanctions.
Grouped Articles
Germany reaps rewards of entitlement cuts - The Washington Post
Washington Post 09/20/2011
New York Times 09/25/2011
New York Times 05/26/2010
Wall Street Journal 09/14/2011
IMF Chief's Change of Tune on Bank Capital
New York Times 09/14/2011
Austerity in Italy May Not End Its Jobs-for-Votes System
New York Times 09/14/2011
Spain's exports 2012-2014
09/25/2011
Grouped Articles
New York Times 09/25/2011
European Central Bankâs Leader Sees Progress in Tough Times for Euro Zone
New York Times 10/09/2012
Spain’s economy: Not yet the new Germany
Economist 03/13/2013
Ireland's exports 2012-2014
01/08/2009
Grouped Articles
New York Times 09/25/2011
European Central Bankâs Leader Sees Progress in Tough Times for Euro Zone
New York Times 10/09/2012
Dell Moving Irish Operations to Poland
Wall Street Journal 01/08/2009
Ireland in the sun after Brexit vote? | Europe | DW.COM | 05.07.2016
DW.COM 07/05/2016
Krugman on economic policy and prospects for Europe in 2011-2014
01/11/2010
Grouped Articles
New York Times 11/10/2013
How Righteousness Killed the World Economy
New York Times 10/12/2014
New York Times 11/30/2014
The Road to Economic Crisis Is Paved With Euros
New York Times 01/12/2011
Running the euro zone: Pact of uncompetitiveness
Economist 02/12/2011
New York Times 05/22/2011
We took a different way to help millions around the world build educated informed mindsets that affects and shapes their lives. For a future that is open, global and digital, with everyone having access to high quality information. We believe in the renewal of America, renewal of Europe, the renewal of India, the rest of Asia, Latin America and Africa. The renewal of our supply chains, health, education, infrastructure, as we rebuild our countries after the pandemic. Literacy and knowledge we believe cannot thrive and grow in a world of web bots, web crawlers, or AI. This requires human curiosity, human learning, and human imagination. We take as inspiration the saying- “One has to be free, and as broad as sky. One has to have a mind that is crystal clear, only then can truth shine in it.” Every contribution whether big or small is precious- in this crisis and ahead.
Support Lyrarc from as small as $1
Terms and Conditions | Copyright Policy | Privacy Policy | Contact Us