by Rebecca Wilder EA Infernal Devaluation Progressing The EU answer to rebalancing portfolio and trade flows within the Euro area (EA) without currency devaluation is recession and deflation. They call…

…the will of financially solid nations such as Germany to unite behind their troubled neighbors to shore up the currency union.” so they can’t say that the German position is…

…within Europe. Given the persistence of the transfer outflows, waning foreign demand for EA assets would pressure the currency downward if trade remains sluggish. originally published at The Wilder View…Economonitors…

…regain market confidence amid a sovereign liquidity crisis. The plan is to enhance fiscal discipline and become more ‘competitive’ (usually that means coincident with currency devaluation). So fiscal discipline +…

…of the currency to worsen the trade balance, and rational expectations to cause a one time explosion in industrial prices and a rather smaller recovery in consumer prices. Rational expectations,…

…illustrate the likely recession in Italy – Roubini Global Economics is pointing to negative growth starting in Q3 2011. Those countries that issue debt in a foreign currency (since Italy…

…Auerback and Stephen Gordon for the whys. But basically, easy monetary policy, depreciation of the currency, and robust US demand fostered the fiscal shift in Canada. None of these conditions…

…is based on the obsolete Italian tradition of inflating the cabinet as well as the currency. Back when there were 5 coalition parties, it was necessary to divide up the…

…or foreign currency. Problem: Could require an act of Congress. “Given that the U.S. economy remains stuck in a liquidity trap,” Berezin concludes, “fiscal policy would be the most straightforward…

…currency. Anyone still wonder why no one wants to build the full model? *No, I don’t want this to be the scenario. But if you offered me the bet, I…