Does Latvia Give Us Any Clues?

Short answer: yes, as long as global trade growth is negligible. Over the weekend I came across a December CEPR paper about the Latvian economy. Authors Mark Weisbrot and Rebecca Ray highlight the Latvian experience with internal devaluation, which may prove to be a case study for the current Eurozone model of internal devaluation by the […]

Temporary Employment: A New Ugly Rearing its Head in Europe?

Last week Clive Crook opined on some fallacies of labor reform, specifically related to the unions and through the Spanish experience. Labor reform is a highly contentious subject, given its close ties to welfare and politics. Based on Clive Crook’s article, I delved into global temporary employment using OECD data and noticed two things: (1) […]

European Daily Catch: Unemployment and Retail

Global labor reports prevailed today, but the US employment report took center stage. I’ll not comment on that report, so as to keep with my generally all things European theme here at The Wilder View. However, a quick sift through my feed reveals rather cynical takes: see Dean Baker’s comments here and here; Spencer’s take here;  Jake’s […]

EA Infernal Devaluation Progressing

The EU answer to rebalancing portfolio and trade flows within the Euro area (EA) without currency devaluation is recession and deflation. They call this ‘internal devaluation’ – shifting relative prices by reducing domestic demand in the debtor countries, thereby shifting the terms of trade. Marshall Auerback calls it ‘infernal devaluation’. Marshall’s right. Today we got more […]

EA Spreads: Why Should the Trend Change?

They changed the title; but originally the NY Times reported “Euro Zone Agrees to Reinforce Maastricht Rules“.  That’s exactly what EA policy makers agreed to last week – not much to bring home. The real shift in policy came from the ECB. Ambrose Evans-Pritchard highlights the ECB’s actions as ensuring some sort of bank profitability, while […]

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