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Saturday, May 10, 2014

Matt Yglesias at Vox : "They saved the eurozone; they just forgot to save the people"

Remember the eurozone crisis? You don't hear much about it anymore, which could easily lead you to the conclusion that the problems have been solved. And to an extent they have been. Nobody thinks the eurozone is going to collapse anymore, and nobody thinks there will be a worldwide banking panic. The only problem is vast swathes of the continent remain an economic disaster area. They saved the eurozone, but not the economies that it comprises or the people who live there.

Two blog posts commenting on it: one by Paul Krugman , and the other by Francesco Saraceno
Interesting read (cited by Yglesias) is this report by Patric Artus of Natixis,
2015 will not be the year when Spain, Italy and Portugal return to normal. When we look at the dynamics of unemployment, public and private debt, household and corporate solvency, and industrial production capacity, we see that it will take from 5 to more than 20 years to really return to normal. During this very long period, their economies will remain fragile; the Southern euro-zone countries will remain under the threat of a return of investor pessimism. 

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