Devaluing the Pound Isn’t a Solution, It’s Default
- 6 July 2012
Gordon Kerr argues that a devaluation of the pound will not be the savior of the U.K. economy. This is because devaluation is not an alternative to sovereign default. But rather, its sovereign default by a different name. Bloomberg View
In an open letter to a German newspaper, more than 150 economists write: "We are deeply concerned about the step towards the banking union, which means collective liability for the debts of the banks of the euro system. Neither the euro nor the European idea will be saved by the extension of liabilities to banks." Reuters
Brian Lucking and Dan Wilson find the tailwinds fiscal policy provided to US economic growth during the Great Recession and the first few years of recovery have shifted direction. Going forward, both forecast that the economy will face stiff fiscal headwinds. The Big Picture
Matthew O'Brien says the only bright spot in the global economy is Africa. Moreover, the only country that recorded better annual growth than China the previous decade was Angola. The Atlantic
In a new paper, a team of American academics discover that rich households suffer more from loose monetary policy than their younger indebted counterparts. The Economist
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