As the PIGS are in deep tulipe (unemployment in Spain is at depression levels - 20% and Greece is effectively bust), what will the Germans do as they move out of recession? Because a growing economy needs a different policy to one in the doldrums e.g. you cannot keep interest rates low.
Italy and the like used to devalue and inflate in past situations like this but cannot now - they have to make the hard decision to stick with austerity.
Its going to be interesting.
Meanwhile in the UK whatever government is elected in May will have to make swingeing cuts so expect unemployment (in the public sector) to be massively increased, house prices to fall drastically and the postponed recession to take hold.
Italy and the like used to devalue and inflate in past situations like this but cannot now - they have to make the hard decision to stick with austerity.
Its going to be interesting.
Meanwhile in the UK whatever government is elected in May will have to make swingeing cuts so expect unemployment (in the public sector) to be massively increased, house prices to fall drastically and the postponed recession to take hold.
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