Coffee will soon cost 20% more in Greece because the terms of a fourth Greek bailout require higher taxes and less government spending.…
Understanding Negative Interest Rates
Since low interest rates insufficiently boosted economic activity, monetary authorities are risking unintended consequences with negative interest rates.…
The Problem With the 35-Hour Week
No longer just a local issue, extending the 35-hour workweek in France relates to worldwide competitiveness for the Daimler Smart care factory.…
The Real Eurozone Problem
Although people in the eurozone want a single currency and their leaders want unity, monetary union problems create political distrust and disunity.…
Weekly Roundup: From Fed Humor to the Wisdom of Warren Buffett
Our Posts Roundup Sunday 3.01.15 Handy notes from Warren Buffett…more Monday 3.02.15 The basics of Greek tax evasion…more Tuesday 3.03.15 Insight about airline queues…more Wednesday …
Weekly Roundup: From New Drachma to Old Monetary Dilemmas
Our everyday economics includes foreign exchange, human capital, economic growth, GDP, inflation, unemployment, monetary policy, tradeoffs and deleveraging.…
Why Greece Would Have a Tough Time With a New Currency
With excessive sovereign debt and bailout problems, Greece may have to switch to a new drachma and endure financial turmoil at home and in the eurozone.…
What Greek Markets are Saying to Us
Reflecting collective intelligence, markets in Greek CDSs and Greek bonds, and the dwindling deposits of Greek banks show if we’ll have a Greek default.…
The Eurozone Sunk Cost Problem
People and nations might perpetuate a bad investment because they look back at their past sunk costs. Instead they should compare future cost and benefit.…
How the EU is Like a Dysfunctional Family
Like a dysfunctional family with members who dislike each other, the EU stays together because of the benefits of David Ricardo’s comparative advantage.…