Via Kevin Drum, the BBC has a feature in which some of the worlds “top economists” show their “most telling” charts regarding the financial developments of the last year.
Conspicuously absent is this chart:
Europe is facing what is fundamentally a money demand crisis caused by a passive tightening of ECB monetary policy. This is due to the insane notion that the yard stick of success price stability, come hell or high water. This is the reason that a crisis is manifesting itself in countries whose fiscal position prior to the recession was not particularly bad.
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Tuesday ~ December 13th, 2011 at 6:03 pm
genauer
ln(1.7 / 0.9) / (2011 – 1995) = 4.0 % = 1.5% Inflation + 2 % productivity + 0.5% population, like it should be
just bursting the real estate bubble, making housing more affordable, for those who were not born rich
The graph just shows the stupidity of N-GDP fitting
Wednesday ~ December 14th, 2011 at 3:42 am
BullseyeMicrocaps.com » Graphic Summary Of The Eurozone Crisis
[...] David Beckworth: Niklas Blanchard sends us to the BBC where “top economists” are sharing their most important economic [...]
Wednesday ~ December 14th, 2011 at 12:52 pm
Pepito
Legend please?
Wednesday ~ December 14th, 2011 at 1:59 pm
genauer
Excellent point !
y-axis could be wàn $
Wednesday ~ December 14th, 2011 at 5:17 pm
genauer
a wonderful Czech website, which shows how much Germany has already done for her neighbors:
http://www.money-go-round.eu/Default.aspx
Wednesday ~ December 14th, 2011 at 11:03 pm
Browsing Catharsis – 12.14.11 « Increasing Marginal Utility
[...] The one chart to rule them all vis-a-vis the crisis. [...]
Thursday ~ December 15th, 2011 at 9:02 am
Nathan Burba
Very interesting piece. Though, like most of your work this is very short, obtuse and difficult to understand. That hides the underlying importance of the chart. As far as I can tell (and I know very little about the subject) the EU’s adherence to keeping the money supply level has created a credit shortage. Is this correct? Please, in the future, provide some clarification and commentary. I think you guys do great work and people want to more easily understand exactly what it is you’re writing about.
Friday ~ December 16th, 2011 at 10:03 am
Linked and Loaded Morning | Punditocracy
[...] One Chart to Rule Them All [...]
Monday ~ December 19th, 2011 at 10:29 am
Which Graph Best Summarizes the Eurozone Crisis? « Föhrenbergkreis Finanzwirtschaft
[...] hkarner am 19. Dezember 2011 Author: David Beckworth · December 15th, 2011 · RGE EconoMonitor Niklas Blanchard sends us to the BBC where “top economists” are sharing their most important economic graphs of [...]
Saturday ~ December 31st, 2011 at 6:02 pm
Links of the Year 2011 « Increasing Marginal Utility
[...] “One Chart to Rule Them All” (Macroeconomics) [...]