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Articles by Desmond Lachman

10 Lessons from Cyprus Thursday, April 25, 2013
Here are the likely lessons future historians will draw from Cyprus’s sorry experience in the euro.
Cyprus’s Imminent Collapse Wednesday, March 27, 2013
Any calm bought by the IMF-EU bailout package for Cyprus will be short-lived. Cyprus is all but certain to experience an economic collapse over the next two ...
The Biggest Loser: Europe and the Global Currency War Monday, February 11, 2013
One can only hope global policymakers wake up to the risks of a strengthening euro before it is too late.
Angela Merkel’s Cypriot Headache Wednesday, January 16, 2013
German Chancellor Merkel will want a quick resolution of the Cypriot economic and financial crisis so that a bailout does not become a domestic political issue ...
No Easing in the European Crisis Wednesday, January 2, 2013
Far from fading, it is all too probable that the European crisis will intensify over the course of the coming year.
Gushing about America’s Energy Future Monday, December 3, 2012
A triumph of market forces rather than government planning.
Don Quixote Is Alive and Well and Living in Spain Wednesday, October 17, 2012
Spain is the euro area’s fourth-largest economy. Bad government policy threatens the whole euro project and the global economy.
An Own Goal in Portugal Saturday, September 22, 2012
The Portuguese economy will be in for the roughest of rides in 2013 if the government goes forward with a proposal to change corporate social security ...
President Obama’s Ticking Greek Time Bomb Wednesday, August 15, 2012
Developments in Athens suggest matters are spiraling out of control.
Groundhog Day in Europe Friday, July 6, 2012
European policymakers have to be concerned that the half-life of their band-aids is getting shorter and shorter while resistance to these measures gets ...
The Predictable European Summit Ritual Wednesday, June 27, 2012
At the upcoming summit, Europe’s northern countries will again reject southern countries’ proposed solutions to the European debt crisis, and the euro crisis ...
Does Greece’s Election Really Matter? Friday, June 15, 2012
The election will just postpone Greece’s inevitable default on its official debt and its unavoidable euro exit by a month or two.
Who Lost Greece? Wednesday, June 6, 2012
A relatively insignificant southern European country threatens the very survival of the euro in its present form. How did we get here, and what lessons does ...
Europe’s Future on the Ballot Tuesday, May 1, 2012
Depending on what happens this weekend, Europe should start bracing itself for a renewed intensification of its sovereign debt crisis.
The Next and More Serious Phase of the European Crisis Monday, April 23, 2012
Two upcoming political events could usher in a new, worse phase of the European debt crisis.
Europe’s Financial Maginot Line Tuesday, April 3, 2012
Europe’s proposed financial firewall around Spain and Italy will likely prove as effective in protecting those countries from another market onslaught as was ...
Time for Greece to Leave the Euro Tuesday, March 20, 2012
It is difficult to overstate how badly the Greeks were misled by the IMF and EU. Greece’s only path forward is to reintroduce its own currency.
Binds and Bonds: Why the EU Should Break Up Friday, February 10, 2012
Europe’s core countries should take preemptive action to form a smaller and more enduring currency union.
Merkel’s Moment Wednesday, November 23, 2011
If past is prologue to the future, there is little reason to believe that Merkel will allow the ECB to provide unlimited support to the periphery.
It’s Europe’s Economic Growth, Stupid Thursday, November 17, 2011
European policymakers are clinging to the forlorn hope that the eurozone crisis can readily be defused by putting in place national unity governments in Greece ...
No Lehman on the Aegean Thursday, October 20, 2011
Can we be spared a Lehman-style crisis when Greece’s hard default occurs?
Obama’s European Economic Time Bomb Monday, August 8, 2011
A wave of defaults is coming. This will badly damage Obama’s reelection chances.
A Tale of a Euro Exit Foretold Tuesday, July 5, 2011
Whether through bailout fatigue, austerity fatigue, or a full-blown bank run, Greece’s exit from the euro is now inevitable.
Ms. Lagarde’s Poisoned Chalice Tuesday, June 7, 2011
The front-runner to replace the disgraced Dominique Strauss-Kahn as IMF chief will inherit Europe on the brink of disaster.
Greece’s Unhappy Anniversary Thursday, May 12, 2011
One year after having received a $150 billion bailout package from the International Monetary Fund and European Union, Greece is back at the public trough ...
Repeating Europe’s Charade? Sunday, March 20, 2011
There is every indication that markets will soon force Portugal to follow Greece and Ireland and request a bailout from the International Monetary Fund.
Till Debt Do Us Part Thursday, February 17, 2011
The European marriage between its peripheral and core countries shows all the signs of the parties having irreconcilable differences.
No Recovery for the American Worker  Saturday, January 29, 2011
The present U.S. economic recovery will be difficult to sustain without a meaningful increase in labor incomes, yet scant attention is being paid to how little ...
What Might Trigger the Euro’s Demise Friday, December 3, 2010
The Greek, Irish, Portuguese, and Spanish governments already have tenuous holds on power. A deepening in their economic crises could give rise to populist ...
Europe Confronts Stein’s Law Thursday, November 18, 2010
If something cannot go on forever, it will stop. This aphorism appears particularly apt for the current Eurozone.
 
AEI