Free Republic

The health of Europe's largest economy is in trouble as Germany teeters on the edge of a recession. A decline in exports dampened the German economy, which shrunk by 0.1 percent in the second quarter of 2019. Concerns over a recession have the German government reportedly under pressure to ditch its self-imposed balance budget, or Black Zero rule, and finance more fiscal stimulus with new debt. The country’s 10-year Bund yield, which hit an all-time record low earlier in the day, responded to the stimulus, bouncing up slightly. “In Europe, its crisis mode,” Brenner said. “And even you had one...

The European Central Bank left its stimulus measures on hold Thursday and warned governments in the 19 country euro currency union that they need to do more to help the economy grow and push up inflation to healthier levels. The bank kept its key interest rates unchanged and decided against extending the duration of its existing bond-buying stimulus program. Bank President Mario Draghi seemed relatively confident about the economy and less inclined to hint at more stimulus than some analysts had expected. Instead, he used his news conference to urge governments to do their part. He said that implementation of...

You probably aren't aware because it isn't a topic that gets discussed much if at all on the outside, but increasingly even monetary policymakers are coming around to the idea that we are in a depression. What choice do they have, really, since practically any chart of any economic account in any economy shows as much. The gathering in Jackson Hole late last month was really an internal discussion in how to think about keeping current central bank frameworks alive in such a world. Earlier this week, San Francisco Fed President (and CEO) John C. Williams spoke in Nevada on...

Large parts of the eurozone are slipping deeper into a deflationary trap despite negative interest rates and one trillion euros of quantitative easing by the European Central Bank, leaving the currency bloc with no safety buffer when the next global recession hits. The ECB is close to exhausting its ammunition and appears increasingly powerless to do more under the legal constraints of its mandate. It has downgraded its growth forecast for the next two years, citing the uncertainties of Brexit, and admitted that it has little chance of meeting its 2pc inflation target this decade, insisting that it is now...

German imports and exports unexpectedly shrunk in July, with a sharp export contraction causing a surprise narrowing in Germany's trade balance. Federal Statistical Office data showed seasonally adjusted exports fell by 2.6% - analysts had expected about 0.3% growth - whereas imports fell by 0.7%, as against expectations for a 0.8% rise. On the year exports slumped by 10% and imports shriveled by 6.5%. The foreign trade balance shrunk to €19.4 billion ($21.9 billion) from €21.4 billion in June, as against expectations for a balance of €22 billion. The Federal Statistical Office said the pace of German exports to other...

European UnionIf you are anxiously awaiting the arrival of the "economic collapse", just open up your eyes and look at what is happening in Europe. The entire continent is a giant economic mess right now. Unemployment and poverty levels are setting record highs, car sales are setting record lows, and there is an ocean of bad loans and red ink everywhere you look. Over the past several years, most of the attention has been on the economic struggles of Greece, Spain and Portugal and without a doubt things continue to get even worse in those nations. But in 2014 and...

As inflation in the euro zone languishes at its lowest level in four years, some analysts argue that the region is at risk of a Japan-style deflationary rut. In October, the euro zone's inflation reading came in at 0.7 percent on year, down from September's 1.1 percent and a four-year low. Core consumer prices in Japan, which include oil but strip out volatile food prices, rose 0.7 percent in year to September with a broader measure rising 1.1 percent. Japan, the world's third biggest economy, has been plagued by deflation for almost two decades and inflation has only recently started...

Unemployment in the eurozone fell for the first time in over two years, according to new statistics. The new figures show that24,000 fewer Europeans were considered unemployed since May. The jobless rate in the 17-member eurozone is still high at 12.1 percent and a decrease in spending by shoppers in France Germany, and Spain will mar the promising new data. Domestic demand across Europe remains weak due to the downturn and austerity measures being taken by many nations. In the 27-member European Union, the unemployment rate is 10.9 percent, down from 11 percent in May. The jobless rate of young...

Within the last month or so the EU published an economic forecast which said something to the effect that it would take the EU 40 years to achieve the economic strength of the U.S. I've searched FR and Googled it without success. Anyone remember it or know where I might find it?

BRUSSELS - The US economy is 20 years ahead of that of the EU and it will take decades for Europe to catch up, according to an explosive new study published on Friday (11 March). The survey, unveiled by pan-EU small business organisation Eurochambres, is intended as a sharp "wake-up call" for EU leaders as they gather on 22 March for a summit on how to boost growth and jobs in the EU economy. The EU's current performance in terms of employment was achieved in the US in 1978 and it will take until 2023 for Europe to catch up,...