Stephen Silvia's Archive
American elections are many things. One thing they rarely produce, however, is a deep and detailed discussion of policy proposals. This is particularly true for economic policy. In 2012, both presidential candidates have gone to great lengths to avoid discussing what they would actually do if elected because each is likely to… Read more >
Why is the euro crisis different from all other sovereign debt crises? The euro’s exchange rate has remained remarkably stable. The euro has depreciated by only 7 percent versus the U.S. dollar since the start of the crisis in 2010. This pales in comparison to the devastating currency collapses of well over… Read more >
Throughout Germany’s handling of the euro zone crisis, much has been made of its strong economy – particularly in the manufacturing sector – as an example for the less economically stable countries to follow. However, as Dr. Stephen Silvia points out, Germany’s success in high-wage manufacturing jobs may not be all it is cracked up to be.
Unfortunately for the euro zone crisis, last week’s EU summit appears to have produced yet another underwhelming plan. According to Dr. Stephen Silvia, Associate Professor at the School of International Service at American University, Europe’s leaders once again failed to address any of the major problems that still ail the euro zone economies. At the core of any plan, argues Dr. Silvia, should be an attempt to make the euro zone an “optimal currency area.”
In an essay titled “Keynes in Lederhosen: Assessing the German Response to the Financial Crisis,” Senior Non-Resident Fellow Dr. Stephen Silvia, professor of International Economic Relations at American University, examines the purported differences in economic stimulus policy between Germany and the United States. Dr. Silvia argues that Germany’s response is in line with it’s status as export champion, and that outside analysts should not be so quick to criticize Germany’s actions.