The Shift and the Shocks

Subtitle: What We’ve Learned and Have Still to Learn From The Financial Crisis

By: Martin Wolf

Notes:

Germany had an incentive to not help their neighbors, because it meant they could get a lower currency and continue to make lots of money.
The EU differs from the US in that there are not automatic mechanizes for one state to help the others.
Unless an economy tried to work together it would have failed, because as one part of the economy tighten, the other would have loosened and cause more debt accumulation.
To deleverage the economy, he would eliminate the interest rate tax deduction.
- Would also fix property taxes.
Advocates better corporate taxation and governance.
- Eliminate corporate taxes so that they would give more money to shareholders.
Probably need a global central bank.
Global Imbalances happened, because the feds mission is to stop inflation and reach full employment, not to correct for financial bubbles.