Thursday, October 28, 2010

German Unemployment and Its Ramifications for the EU

In Germany, October unemployment will come in under the 3 million mark, according to Germany’s labor minister,Ursula von der Leyen .

It will mean the jobless rate was unchanged at 7.5%. This will be the first time in 18 years that German unemployment will be under 3 million.
With unemployment somewhat under control, there will be few calls out of Germany for an expansionary ECB monetary policy. In other words, Germany will not be in favor of debasing the euro, which is the only chance the PIIGS would have to pay off their outsized debt cheaply.

It may take sometime, but most of the PIIGS will likely default. Greece most likely will be first.

No comments:

Post a Comment