Economics and politics - comment and analysis

Turkey and the mirage of monetary sovereignty

Cross-posted from Brussels Morning (https://brusselsmorning.com)
Turkey has fallen into a traditional carry-trade trap that is destabilising its currency; the structural solution to the challenge at hand would be to join a currency bloc.
The Turkish lira’s exchange rate has been in the international financial markets’ focus for months. …

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Public Investment: why America’s “more” is better than Europe’s “too little”

Cross-posted from Brussels Morning (https://brusselsmorning.com)
The US is deploying approximately 25% of its GDP to bolster the economy in comparison to a more timid approach from Europe, the former will likely prove better for labour market recovery.
There is now hope that the global economic situation will rebound as the pace of vaccination picks up. …

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The German Service Sector Miracle

Translated and edited by BRAVE NEW EUROPE
Germany’s Federal Statistics Office presented its first results for German gross domestic product (GDP) for 2019 on 15 January. According to these results the German economy grew by 0.6 per cent last year. Last week (14 February) the results of the calculation for the fourth quarter of 2019 were also presented. …

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Staatliche Schulden und Löhne – bricht die Vernunft sich Bahn?

Es ist meistens nur eine Frage der Zeit, bis Ideen, für die es eine klare empirische Evidenz gibt, auch in den Kreisen nicht mehr verleugnet werden können, die ihnen aus ideologischen Gründen zunächst schroff ablehnend gegenüber stehen. Das war bei den staatlichen Schulden so und jetzt gilt es allmählich für den Zusammenhang von Löhnen und Preisen. …

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