Christine Lagarde avverte che la crescita europea è legata alla “scomparsa” del mondo – Il capo della BCE accusa i politici di sei anni di inazione mentre il modello dipendente dalle esportazioni diventa defunto
https://on.ft.com/49zfndk
di BasedSweet
8 commenti
She doesn’t criticize herself even though she’s in control of monetary policy for Eurozone countries
Can’t read article but headline is laughable ‘export dependent model becomes defunct’…
We are a small planet that over a few thousand years have slowly been stitching ourselves closer and closer together. ‘Exports’ at its most basic is from me to someone else. We have moved from villages to towns to regions to countries and now to supranational entities.
She could’ve studied the Romanian economy for the past 30 years and come to this conclusion sooner.
This isn’t a question of policy making but demographics. The median age in Europe is 45 only Japan and South Korea are in the same spot. Unlike in India or China there’s no catch-up growth because most of the continent is already rich. You can lament who you’re trading with and try to switch your trade partners, but the domestic consumer base is shrinking every year, and demographics are baked in for decades.
So you can export or get poorer every year, and SK and Japan are examples of this respectively, the former just overtaking the latter on a per capita basis.
No paywall: https://archive.md/yDoGo
The Euros need to start spending a lot, domestically, to juice up their economy
Just like what the americans have been doing since last decade
This is the result of 15 years of the failed economics of austerity. What have we gotten for our “responsibility” :
1. Chronic underemployment in most of the bloc.
2. Large portions of the east and south remain with substandard infrastructure.
3. Aging out of date mass transit systems.
4. Germany and France, the engines of the bloc, in political crisis and economic stagnation.
5. Looking set to be eclipsed by China.
6. Ever Increasing economic inequality.
7. More European governments being run by parties on Russia’s payroll.
Maybe if the ECB loosened it’s purse strings and allowed members to borrow liberally to make real investments in the economy, we could have our population building the future instead of being stuck working as waiters and Airbnb hosts. Instead we have a system that’s allergic to spending money on anything.
The export-dependent model was questionable for an economy the size of the EU. Germany and some other countries maybe can pull it off with some luck but who is going to absorb large trade deficits with a $20 trillion economy?