JournoGeekery


  1. The Crisis In Europe, Explained : Planet Money

[In his recent, much-discussed speech, George Soros] explained the past and present of the euro crisis, and made a prediction about the future. …The speech reminded me of this amazing graph that made the rounds last year [above].
Taken together, the speech and the graphic give a quick, dramatic overview of Europe’s crisis. …
1. Convergence.  Before the euro was introduced, governments in Greece, Spain and Ireland, among others, had to pay a lot more to borrow money than governments such as France and Germany. But after the euro was introduced, there was this amazing convergence. Suddenly, all the countries could borrow at the same rate.
…
2. The False Dream. For roughly a decade, it seemed that the dream of the euro was coming true. Borrowing costs were almost identical for all of the countries in Europe. But under the surface, Europe was actually growing apart. Soros writes:

Germany, struggling with the burdens of reunification, undertook structural reforms and became more competitive. Other countries enjoyed housing and consumption booms on the back of cheap credit, making them less competitive.


And more analysis—including item 3—on Planet Money. Apologies for all the snip-edits marked by ellipses, it’s a tough post to pull-quote to give the graph context.

    The Crisis In Europe, Explained : Planet Money

    [In his recent, much-discussed speech, George Soros] explained the past and present of the euro crisis, and made a prediction about the future. …The speech reminded me of this amazing graph that made the rounds last year [above].

    Taken together, the speech and the graphic give a quick, dramatic overview of Europe’s crisis. …

    1. Convergence.  Before the euro was introduced, governments in Greece, Spain and Ireland, among others, had to pay a lot more to borrow money than governments such as France and Germany. But after the euro was introduced, there was this amazing convergence. Suddenly, all the countries could borrow at the same rate.

    2. The False Dream. For roughly a decade, it seemed that the dream of the euro was coming true. Borrowing costs were almost identical for all of the countries in Europe. But under the surface, Europe was actually growing apart. Soros writes:

    Germany, struggling with the burdens of reunification, undertook structural reforms and became more competitive. Other countries enjoyed housing and consumption booms on the back of cheap credit, making them less competitive.

    And more analysis—including item 3—on Planet Money. Apologies for all the snip-edits marked by ellipses, it’s a tough post to pull-quote to give the graph context.