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Economics, International economy

Is quantitative easing really going to save the euro?

Last week, at Jackson Hole, ECB President Mario Draghi clearly signaled that he has finally come around to recognizing the threat that deflation would pose to the Eurozone economic recovery. However, before jumping to the conclusion that this recognition removes the risk of yet another and more serious phase in the Eurozone debt crisis, one might want to reflect on two basic questions. read more >

Image Credit: MPD01605 (Flickr) CC
Economics, International economy, Pethokoukis, U.S. Economy

Look out, America, here’s how Europe’s debt crisis might reignite

I would be more confident in the US economy’s ability to withstand a new euro fiasco if, say, a nasty bout of weather hadn’t contributed to one of the worst non-recession GDP quarters since WW II. History suggests a 2%-growth economy is a fragile economy. And newspaper headlines suggest the eurozone is still stuck in a long recession or depression, which threatens to eventually reignite the region’s debt crisis. read more >