The eurozone’s economy is at the edge of collapse. Southern European countries experienced a sovereign debt crisis in 2010, and the unemployment rate in the euro area is still as high as nearly 10%. Italy rejected Mr Renzi’s pro-EU reform plan in the referendum, and in France, the anti-EU National Front’s Ms Le Pen is increasingly popular.
Yet what is the cause? Whilst the EU also faces the immigration crisis, the economic reason will be easily comprehended by only glancing at the trade statistics of the eurozone countries.
Continue reading The eurozone is a German colony, the net exports of the member states explain
Tax cuts, investment, the strong dollar and the twin deficits. For economists, Reaganomics is a very unique economic experiment. Looking at the GDP and the stock market in 1980s, it seems that Reaganomics was successful, but it is not well understood what exactly drove the economy. This article aims to explain why Reaganomics failed in the first few years and led to the later success, and what the cause was.
Continue reading Explaining how Reaganomics failed to act against the effects of rate hikes