Monthly Archives: January 2011

FT.com in Germanglish

Wolfgang Münchau seems to be overmatched by the English language.

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Eurozone in trouble until September 2013

Currently, we have a bad-tempered debate on the pros and cons of Eurobonds (Eurobonds = bonds which are sold by the EU as a whole; this term differs a bit from its usual meaning in the context of financial theory).

From the perspective of those who fear nothing more than a split up of the Euro-Zone, Germany is a big problematic factor.

Thus, I have positive news for them.

According to the Politbarometer which measures the political sentiment of German voters, the Kanzlerin is not much likely to be reelected in 2013.

Of course, there are two more years left, but this trend seems to stem rather from a deep-rooted rejection of the politics of the Free Democratic Party than from a transient state of mind.

So, if a assume that this trend will persist, there will probably be a new government in 2013 lead by the Social Democratic Party and Alliance ’90/The Greens. Both parties sympathize with the idea of Eurobonds (here and here – sorry! both in German).

Therefore, if the Eurozone survives until that date, the unfortunate economic situation of the EU might get some support from the political sphere.

"Separation oyee"? Sudan's referendum vote coming closer

There are only a few days left until the people from Southern Sudan will vote for secession or unity.

Although I’m not an expert of the political landscape of the large state in the hearth of Africa, I kind of sympathize with the idea of secession.

On the other hand, I’m a little bit worried, since radical political changes of that dimension are likely to become a threat for peace.

Let’s hope for the best.

Here you find Haru Mutasa’s impression from the last campaigning day in Jumba.

Btw, will DR Congo be the largest country in Sub-Saharan Africa then
(according to World Bank definiton)?
 

 

Rowe's comments on Krugman

Although I basically agree with Krugman’s view on the recent Irish crises, I found his comparison of a EU country with US states (here and here) a bit implausible, but I did not know why.

Now the surprisingly obvious answer is provided by Nick Rowe:
The FED is a much better lender of last resort than the ECB.

Price downward flexibility in Ireland

Here we can refute those perspectives which claim that the Irish economy lacks flexibility.
In a German supermarket I wanted to buy some Irish butter in order to improve they balance of payment position.

What I found was shocking, showing how far deflation already went on the little green Ireland.