The economic situation in Europe in a nutshellDecember 10, 2010 Tim WorstallEuropean Union, Food7 CommentsThe alternatives on offer are internal and external devaluation. Choose one of the two for there are no other alternatives. previousCompass are ignorant idiotsnextAs a tax expert Richard really ought to put this dingbat straight 7 thoughts on “The economic situation in Europe in a nutshell” Bilbao boy December 10, 2010 at 1:24 pm Clear, concise, hype-free and reads wonderfully. Even I understand what the man is saying. Is there any way we can make it obligatory reading for our ‘leaders’? Both for its content and as an example of clarity. kenzdawg December 10, 2010 at 1:31 pm No other *options*. Don’t these people have sub-editors… Sean December 10, 2010 at 2:00 pm As opposed to the muddle through and see if something turns up option? always a winner with the political class. Sean December 10, 2010 at 2:10 pm Is it legal for Germany under its constitution to supply the restructuring sweeteners? Patrick Troy December 10, 2010 at 2:15 pm Interesting parallel with the UK where the South East (Germany) succeeds by trading on the failure of the periphery (Scotland, Wales, Ireland) who then become dependent of the hand-outs of the South East in the form of tax transfers. Taken to its logical (?) conclusion suggests independence and separate currencies for all. UKIP take note. Serf December 10, 2010 at 3:01 pm …..succeeds by trading on the failure of the periphery ….. If Scotland, Wales etc. were richer, London would make more money from trading with them. How can their relative poverty help? If the logical conclusion to leaving the EU is the break up of the UK, then the logical conclusion to staying in is world government by a completely unaccountable elite. Matthew December 10, 2010 at 5:40 pm External devaluation would also increase the value of their debts, I think he misses that the point. There are, in fact, some other options. The most obvious is internal revaluation, in Germany. To some extent this is happening and with Ireland’s internal devalauation there’s been something like a 25% effective devaluation in the last two years. Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.