The Euro and Europe’s economic stagnation

Published on March 31, 2015   30 min

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Dear listeners, my name is Jan Willem Blankert. I'm an analyst of events in Europe and in Asia. In this talk I want to discuss with you Europe's most serious problem today, the six-year economic slump of the Eurozone. It's the longest period, consider that, of peacetime economic stagnation in Europe. The longest period of peacetime stagnation since the Great Depression of the 1930s. How can we improve the living standards of the people in the EU? How can we restore the economic growth path we were on?
I would first like to see with you how this long slow down can be explained and, second, if there's a way out. My conclusion is that the main reason for this continuous half-recession has been wrong policies applied by myopic policymakers who have been focusing on the wrong issues. It is sad to see the outright suffering this has caused in southern Europe and the stagnation and lack of progress in Eurozone countries in general, including Germany, where in spite of the praise the country receives, real progress of income per head has been practically zero for over the last decade. Full disclosure, my talk is based on the first chapter of a book I'm writing about the euro, how it works, and how bad policies have contributed to bad economic outcomes. So, my idea is to give you a sort of a pre-taste now of that book.