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:

[Courtesy of Marcus Nunes]

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.