The reason why the Eurozone does not work is not asymmetric shocks but asymmetric trends

Ekonomerna har länge varnat för att EMU kan utsättas för problem genom vad som kallas ssymetriska chocker. Paul Krugman skrev nyligen härom:

- As I’ve tried to point out in a number of posts, Spain’s troubles are not, despite what you may have read, the result of fiscal irresponsibility.

Instead, they reflect “asymmetric shocks” within the eurozone, which were always known to be a problem, but have turned out to be an even worse problem than the euroskeptics feared.

There’s a kind of classic simplicity about the story — it’s almost like a textbook example. Unfortunately, millions of people are suffering the consequences.

Read more here

Nu har Gilles Saint-Paul (Toulouse School of Economics and  Scientific Advisor to the Economic Studies Directorate at the French Ministry of the Environment. CEPR Research Fellow) tänkt till och kommit på något:

The reason why the Eurozone does not work is not asymmetric shocks but asymmetric trends.

Good point.

EMU skulle leda till konvergens, var det tänkt.

Men det blev asymetric trends.

If something can go wrong, it will.

The Devil is in the detail.

Read more of Gilles article here

Vad säger Birgitta Ohlssson?





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