UK and US have outperformed eurozone for same reason they did better in 1930s: they have made fewer macro-economic blunders
I told you so. Barack Obama is too schooled in the niceties of diplomacy to put it as bluntly. But he would be well within his rights to utter those four words when he sits around the table with Angela Merkel at the G20 summit next week.
Back in 2010, when the half-yearly gatherings of developed and developing countries were in their infancy, the G20 met in Toronto. Up until this point, the summits had shown a welcome unity, with all nations committed to the goal of avoiding a second Great Depression.
In Toronto, the consensus broke down. Obama’s view was that the recovery was fragile and that this was the time to keep the pedal to the metal. The view in Germany, supported by Britain, was that there was a need to rein in the budget deficits that had widened during the Great Recession.
At the European Central Bank, there was concern that the deep cuts in interest rates and the unorthodox policies being pursued by the Federal Reserve and the Bank of England posed a threat to price stability. Despite the onset of a five-year sovereign debt crisis that almost destroyed the euro, the ECB raised interest rates a year later.
Interesting article even though the jury is still out since the canary is, technically, still in the damn coal mine.
http://www.theguardian.com/world/20...ng-great-recession-eurozone-economic-blunders
I told you so. Barack Obama is too schooled in the niceties of diplomacy to put it as bluntly. But he would be well within his rights to utter those four words when he sits around the table with Angela Merkel at the G20 summit next week.
Back in 2010, when the half-yearly gatherings of developed and developing countries were in their infancy, the G20 met in Toronto. Up until this point, the summits had shown a welcome unity, with all nations committed to the goal of avoiding a second Great Depression.
In Toronto, the consensus broke down. Obama’s view was that the recovery was fragile and that this was the time to keep the pedal to the metal. The view in Germany, supported by Britain, was that there was a need to rein in the budget deficits that had widened during the Great Recession.
At the European Central Bank, there was concern that the deep cuts in interest rates and the unorthodox policies being pursued by the Federal Reserve and the Bank of England posed a threat to price stability. Despite the onset of a five-year sovereign debt crisis that almost destroyed the euro, the ECB raised interest rates a year later.
Interesting article even though the jury is still out since the canary is, technically, still in the damn coal mine.
http://www.theguardian.com/world/20...ng-great-recession-eurozone-economic-blunders
