EU leadership needs to go against the grain with debt crisis Globe and Mail
The global economy has been feeling the aftershocks ever since.
And the inflation threat the ECB president insisted he was fighting? It has proven to be fleeting and inconsequential. Prices for oil and other commodities have retreated.
Unfortunately, the world is now littered with similar economic policies that will exacerbate the problem of slow growth. (That’s the definition of “pro-cyclical” - a policy that amplifies the prevailing economic trend, rather than counteracting it.)
For example: there’s the so-called paradox of thrift, now playing out in Europe. No one doubts that some European countries must work down their debts. But the deep austerity now under way in Spain, Italy and elsewhere is pushing the euro zone to the brink of another recession, which will hurt government revenues and make the job of deficit-cutting even harder.
And last week, German Chancellor Angela Merkel and French President Nicolas Sarkozy pitched the idea of a financial transaction tax, ostensibly to fight speculation and help countries balance their books. But experts warn the tax would squeeze much-needed liquidity and lead to even more financial market volatility.
Third-World Debt: 6 Reasons To Drop It.
Third-World Debt is EVIL! This video is made by Crittenden County Middle School students of StudentActionNetwork.org. The info from the video was ...
third world debt - News
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