Wednesday, December 14, 2011

Which Graph Best Summarizes the Eurozone Crisis?

"Niklas Blanchard sends us to the BBC where "top economists" are sharing their most important economic graphs of the year. Here, for example, is an interesting graph from Vicky Price of FTI Consulting:

Price explains its importance:
"For a long time the perception was that the creation of the euro meant sovereign risk was effectively the same across all countries. That of course proved to be wrong. The Lehman's crisis and financial meltdown that followed affected the deficits and debt levels of different countries in different ways. Interestingly it is much the same countries now with very high yields as it was pre-euro, suggesting little has changed fundamentally in a decade."
at  http://macromarketmusings.blogspot.com/2011/12/which-graph-best-summarizes-eurozone.html