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A simple proposal

The following is a proposal for the Eurosystem (ES) to change the way it operates in order to become able to fulfill its objectives. The proposal relies on the principle that international transactions should not have an impact on a country’s money supply. In the eurozone, this can be accomplished with the National Central Banks … Continue reading

TARGET2: The flaw in the euro’s design

One of the good outcomes of the eurozone crisis is that it has given the opportunity to millions of European citizens to understand what a pile of financial jargon really means, like CDS, haircut etc. But people are still unaware of what TARGET2 is, because mainstream media have hardly any idea about it. This post … Continue reading

About the “Modest proposal”

Since the eurozone crisis started dominating the news in late 2009, there has been only a handful of economists who have called it by what it really is: a balance of payments crisis. None of them has ever gotten a Nobel Prize for economics and hardly any of them is a frequent guest in the … Continue reading

The failure of the euro and the bailout of Germany – Addendum

In my previous post I tried to explain in a simple way how the euro failed to create sustainable growth in the eurozone and how the surplus countries got bailed out thanks to the common currency’s flaws. In this one, I add some notes to elaborate on a number of details that complete the story … Continue reading