It’s (Rarely) the Government’s Fault

As the U.K. slipped into a technical recession – two quarters of negative GDP growth – the media, industry, and opposition parties were quick to pounce on the U.K. government austerity measures. Either they blamed the U.K. government for the slowdown outright, or suggested that austerity during an economic slump are foolish. The data says… Read More

Across the Eurozone, Citizens Vote Out Austerity Governments

World stocks continue to oscillate with every bond sale and finance minister utterance in the 17 member Eurozone. Yet, the underlying reality is that the situation hasn’t changed at all. Matthew O’Brien has a nice summary in The Atlantic. It’s tragicomic. Southern Europe already has an unemployment crisis. Their depression-levels of joblessness are a dagger… Read More

For Now, Global Turmoil will not Phase Canada’s Economy

Canada’s economy has avoided the effects of global financial turmoil thanks to a hot housing market and the end of some temporary economic shocks. GDP is set to have its strongest quarter since the fourth quarter of 2010, offsetting the temporary weakness from the second quarter. Growth in July and August was quite solid, and… Read More

Opposing Political and Economic Forces Set to Tear Eurozone Apart

Nouriel Roubini has criticized the European Central Bank for being a lender of last resort – a buyer for European bonds when interest rates become unsustainably high. However, politics is stopping the use of monetary policy, which could soften the economic blow to countries facing severe austerity measures. In a NY times piece today, a… Read More

The Possible End of the Euro in Peripheral Countries

As German Chancellor Angela Merkel announced yesterday, the only way forward for the Euro is for a full political and fiscal union of the member countries. With small peripheral Euro economies, the need for political and fiscal integration was apparent from the start. However, lacking political will, it was impossible to implement. Now with anti-EU… Read More