Monthly Archives: March 2013

This is outrageous!

It is completely mistaken to use the Cyprus savings account tax as a blueprint for future bank rescues. All this happens because the European Union erroneously subscribes to the common wisdom that it was wrong to let Lehman Bros go bust and that every bank should instead be rescued in order to avoid a systemic risk for the entire financial system.
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Bad Boy Germany, yet again!

Germany’s international image has received yet another severe blow in connection with Cyprus rescue package Continue reading

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Does Latvia’s austerity success serve as a test case for EURO-style debt consolidation?

Latvia’s success with austerity proves that the success of fiscal consolidation programs depends much rather on national consensus and common interest than on some obscure law of economic nature as Keynesian commentators would have us believe. Continue reading

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We cannot return to the innocent Citroën 2CV world of late

The argument that Southern European countries need to exit the EURO in order to regain the capacity to devaluate their currency if economic reality dictates so is flawed. After all, it is really hard to imagine that people anywhere could go back to the old Citroën 2CV days of late. Continue reading

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