Tuesday, September 11, 2012

The dismal economic landscape on both sides of the Atlantic

The FT has a nice graphic of output gap that captures the dismal economic situation on both sides of the Atlantic.

The coming Wednesday is important on many counts. The German constitutional court will determine whether it is right for German public funds to be contributed to the European Stability Mechanism, which underpins the ECB's recently announced short-term unlimited government bond buying program. The Bundesbank has already criticized the move "as being tantamount to financing governments by printing banknotes". The same day, voters in Netherlands could give a signal of their commitment to stay on or leave Europe in the country's national polls. Finally, in light of Chairman Bernanke's pessimistic comments on the US economic prospects, the Fed will decide on whether or not to go ahead with another round of quantitative easing.


MrIlir said...

It's impossible to understand the this data without having a better understanding of economic growth. Alex Gheg has a new consumer theory that gives us a scale for growth that measures previously hidden thoughts. We can measure utility growth. Quantity, quality, variety and convenience in one equation. http://www.youtube.com/watch?v=u6tFLGpcOpE

O'Grady's Landscape said...

Interesting post. I have been wondering about this issue,so thanks for posting.