Reform alone is no solution for the eurozone – Martin Wolf –

This is one of the top trending articles in the FT at the moment. This article by Martin Wolf is strongly recommended for a read. Check it out!

via Reform alone is no solution for the eurozone –

Whilst there is nothing really new in this article, it summarizes the economic policy debate for Europe. The article concludes that Germany must change her views to save Europe. There are two options. Radical monetary policy, viz. QE on a large scale or fiscal demand stimulus.

It is unlikely that this article will seriously influence the German government, who have already ignored similar advice from the IMF.

Meanwhile, it is hard to imagine that France and Italy will continue to toe the line on the fiscal compact. But if these big countries flout the rules, it will be grossly unfair on smaller countries, like Greece, Spain, Portugal and Cyprus.


Abenomics: Off target –

English: Power Grid of Japan Deutsch: Stromnet...

English: Power Grid of Japan Deutsch: Stromnetz Japans (Photo credit: Wikipedia)

This is an excellent article from the FT on Abenomics. Check it out!

via Abenomics: Off target –

Personally, I thought there were some parallels for European countries, as well. There is no substitute for effective reform of the supply-chain, a smaller public sector, an effective banking system for small businesses, public sector investment and open competition – throw in radical improvement to the country’s education and skills, and there is a recipe for improved competitiveness.

Any thoughts about which European countries will suffer from Japan’s disease?