There are several versions of these slides:

• Slides. html / pdf / zip

• Handouts. html / zip

If you want to know more, there also exists a more advanced version of these slides (Ph.D. Level) - this is absolutely not exam material:

• Slides. html / pdf / zip

• Handouts. html / zip

We’ll illustrate some macroeconomic history in:

• United States

• Japan

• Europe

• Germany

• Shaded areas: NBER recessions.

• World War II: large government purchases, loans to Europe (external demand).

End October 1929: The Big Crash

• April 2014: When the government raised the tax to 8% from 5% in April 2014, a last-minute buying spree.

• Subsequent pullback in demand caused a big downward swing in consumer spending.

• 7-year old winter of discontent

• Design faults of the eurozone. Greek’s nation failings. \(\Rightarrow\) monster of a crisis.

• Greece went to a period of Ponzi growth to a period of Ponzi austerity.

• A glut of savings, generalized austerity leads the EU to export its crisis to the rest of the world.

• In Europe we have good reason not to provide financial assistance without demanding something in return.

• A lot of people underestimate the problem of moral hazard.

• Debt relief would not solve any structural problem. It would only weaken the incentives to carry out reform.

• Any democratic system tends to take the more comfortable decision if you have the alternative to do so.

• Wolfgang Schäuble: the Eurozone economy is expected to post positive growth.