MADRID | Economic growth is compatible with high debt, particularly when your central bank can make fears of default vanish and interest rates can be contained.
Articles by Miguel Navascués
About the Author
MADRID | What is important is that public debt drops and the economy recovers. And to achieve that, Japan has chosen the opposite strategy than the eurozone’s authorities.
MADRID | Post-war capitalism, in which the state had a leading hand addressing needs and creating markets, had extraordinary good results.
MADRID | The problem is that some eurocrats seem unable to realise the consequences of their irresponsible talk when they land jobs on the top of the European pyramid.
MADRID | The eurozone is trapped in internal conflicts that prevent the European Central Bank to compensate, as it should, the fluctuations of money demand.
MADRID | In Italy, as in other southern eurozone countries, citizens cannot believe there will be light at the end of the austerity tunnel.
Is Ireland such a good model to follow as Brussels would like the rest of the euro periphery to believe? The latest financial creative engineering to trim Irish public debt tells us that reality is quite different, and the eurozone still needs to find a long-term programme to solve its problems.
Spain tends to be one of those countries with external deficit as it is in need of capital goods. And this is all right if it’s financed with, say, direct investments.
Our welfare depends on finding more affordable production systems, too, because it frees capital and human workforce that can be used in other fields. This is how an economy improves.
In the current environment of huge indebtedness and low inflation, with sizeable unspent resources, a strong euro adds insult to injury.