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Can U.S. help Europe out of its econ hole?

EconoMeter panel offers advice and warnings

Roger Showley, U-T SAN DIEGO

Friday, January 16, 2015

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Kelly Cunningham, National University System
Answer: NO

Europe’s problems are caused by internal competitive imbalances among European nations. The Eurozone will not survive without restoring competitiveness, impossible in a fixed-exchange-rate regime. The result is depression, 20+ percent unemployment, and large nominal wage cuts. The slow growing U.S. economy, rising just 2.5 percent over the past year, cannot pull Europe, or rest of the world, out of this stupor. Quantitative easing and zero interest rates leave the U.S. extremely vulnerable as well.