Quick Rant Link

2010 May 17
by Dave

Here is a quick link to Krugman’s morning rant about the Euro still being doomed in spite of the giant loan package. His point is that wages in the peripheral Euro zone countries need to fall an unrealistic amount relative to Germany and that unless these countries are able to subject their citizens to¬†ridiculous¬†austerity the Euro will be finished sooner or later. Here is Krugman’s repeated mantra, emphasis his, not mine:

WAGES IN THE PERIPHERY NEED TO FALL 20-30 PERCENT RELATIVE TO GERMANY.

So much for last week’s shock and awe.

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