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According to Nobel Prize economist Paul Krugman is impossible that we will ever return to a normal situation like that of 2008. In an interview with French newspaper Les Echos he orphaned to the fact that Europe is a Japanese scenario is difficult to avoid. The main reason for this is the aging population. "Since 1990, though the population in Japan is falling," says Krugman. "That means no more growth prospects, there is no need to investments or to increase production. And in the eurozone is the same phenomenon underway. The active population is declining by an average of 0.5% per year. In Europe, France home values estimate and Sweden are the only countries where the birth rate, the mortality home values estimate rate in balance. "
Krugman points out that the economic fundamentals have changed. Complete the last five years "Everybody is just to point to a return to normal economic situation before the crisis. But that does not return there. The IMF played for that we would see in 2013, returning one now speaks of 2017. This is logical because the tremendous home values estimate growth between 2000 and 2007, all financed by debtor. Who have reached such a high level that it is no longer absolutely tenable. The debt burden of households names in the "fat years", with 4% 3A which supported domestic demand. But because governments families such high tax burden imposed is no longer possible. There is, I think, in fact, no way out of the crisis. Unless home values estimate the Japanese Prime Minister Shinzo home values estimate Abe with his "Abenomics" proves that it can. In that case, policies will be an example for everyone. "
Posted June 15, 2014 0 Geopolitical unrest in Iraq changed nothing fundamental
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