Wednesday, May 13, 2009

Asymmetric Europe

According to the Financial Times (“Eurozone industrial output plunges”, May 13) “Industrial production in the 16-country region was 20.2 per cent lower than a year before … The latest figures … were dragged lower by weak Italian, Spanish, and French performance. In contrast, industry in Germany … has shown clearer signs of moving closer back towards growth.”

Do you remember the claim of economists favorable to the euro pretending that the single currency, once created, would unify the real economies of the zone, making it (unbelievably !) “endogenously optimal” even though it was not so initially.

Well, back to the drawing board please.

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