Hardly any economist would have disagreed if Peter Navarro, new chief trade adviser to President Trump, had just restated the standard textbook wisdom: that a common currency cannot fit well the diverging needs of economies that are hit by asymmetric shocks. But Mr. Navarro’s statement was significantly more original, claiming that Germany is using a …Read More

Growth in Europe is still fragile. The euro area exited from recession in spring 2013, following six quarters of declining GDP, but stagnated just one year later. Weak private sector balance sheets, credit constraints, and high unemployment are still undercutting demand while high margins of economic slack together with steeply falling energy prices have pushed …Read More