Europe needs to move from fear of the ‘moral hazard’ of fiscal co-operation to confidence in its collective benefits.
Spreads in a single market with a single currency distort trade flows and competitiveness. The European Central Bank should close them.
In a recent LSE blog, (reproduced here), Donato Di Carlo presents empirical evidence for what he considers a ‘quiet rebalancing’ of the German economy. Using 2010 as a reference point, he bases his argument on a comparison of the growth of real unit labour costs, real expenditures, and import-export relations of Germany vis-à-vis other European […]