In the current debate about government debt, practically all experts are wrong because they simply ignore the macroeconomic interrelationships without which government debt can neither be explained nor justified. Almost all of them, even the seemingly enlightened ones, have remained Swabian housewives in one way or another. …
Two weeks ago (here), I pointed out that there is a dangerous divergence between wage costs in the eurozone and those in countries that maintain a fixed exchange rate with the euro. This week, Eurostat has been publishing new figures showing that the problem is getting bigger instead of smaller. …
European monetary policy continues to puzzle. Although there is no longer any risk of inflation, the ECB is hesitant to recognise this and implement it in faster interest rate cuts. The inflation rate for the monetary union as a whole is a moderate 2.4 per cent, …
If you want to know what is going wrong in Germany in terms of economic policy, you can watch any news programme on the days when the Federal Employment Agency announces the monthly results of the labour market statistics. Take the heute-Journal programme from 28 February this year. …
