Tuesday , November 5 2024
Home / Real-World Economics Review / Euro economies: still out of kilter

Euro economies: still out of kilter

Summary:
According to Eurostat, unemployment differences in the EU are still large (graph). Especially the euro countries do bad. The Netherlands and Germany seem to buck this trend but this must be ascribed to whopping surpluses on their current accounts. As not all countries can, by definition, run current account surpluses at the same time (my surplus is your deficit) this means that total domestic demand in the Euro Area is way to low. Another option: people are working too much and have to retire earlier or (my preference) take more time off. Anyway, Euro economies are either out of kilter because of high unemployment or because of extreme current account surpluses.

Topics:
Merijn T. Knibbe considers the following as important:

This could be interesting, too:

Merijn T. Knibbe writes ´Fryslan boppe´. An in-depth inspirational analysis of work rewarded with the 2024 Riksbank prize in economic sciences.

Peter Radford writes AJR, Nobel, and prompt engineering

Lars Pålsson Syll writes Central bank independence — a convenient illusion

Eric Kramer writes What if Trump wins?

Euro economies: still out of kilter

According to Eurostat, unemployment differences in the EU are still large (graph). Especially the euro countries do bad. The Netherlands and Germany seem to buck this trend but this must be ascribed to whopping surpluses on their current accounts. As not all countries can, by definition, run current account surpluses at the same time (my surplus is your deficit) this means that total domestic demand in the Euro Area is way to low. Another option: people are working too much and have to retire earlier or (my preference) take more time off. Anyway, Euro economies are either out of kilter because of high unemployment or because of extreme current account surpluses.

Merijn T. Knibbe
Economic historian, statistician, outdoor guide (coastal mudflats), father, teacher, blogger. Likes De Kift and El Greco. Favorite epoch 1890-1930.

Leave a Reply

Your email address will not be published. Required fields are marked *