Tag Archives: Eurozone

On Exporting Deflation

Return­ing to our char­ac­ters of a few weeks ago, we remem­ber that Bob and his coun­try had increased the sup­ply of waf­fles thus mak­ing the export of Bob’s organic grass-fed but­ter cheaper. This hap­pens because other coun­tries like Nigel’s can now get more waf­fles on the pas­try cur­rency mar­ket and can buy more of Bob’s […]

The End of The Euro For Dummies

Let’s start with a story. You and I are friends. You dis­cover that you’re going to come up a lit­tle bit short on the rent this month and ask to bor­row $100 from me. I agree, loan­ing you $100 at 10% inter­est (we’re just doing that to keep the math sim­ple, I would never loan […]

Can Civilization’s Birthplace Become Its Funeral Pyre?

Over­reach­ing head­lines aside, the Euro­zone is a bit of trou­ble. Greece has been bailed out in an attempt to avoid a sov­er­eign default. Those in the know think the Greeks are unlikely to be the last coun­try in the Euro­zone to require a bailout and the con­di­tions the IMF are expect­ing Greece to con­form with […]