The globally leading, liberal weekly blames German prudence for the Eurozone’s woes (The Economist, 31 August 2019). It is really funny that savings can become a sin instead of a virtue. They fail to admit that it is not Germany’s savings, but the structure of the Eurozone that is to blame. There are two different Eurozones in one: the groups of Northern and Southern members. For the latter, new QE policies, negative rates and weaker exchange rates would be suitable. For the Northern countries, especially for Germany just the opposite is true. Prudence is really dear when you have so much to lose.
Governor Matolcsy, MNB, the Central Bank of Hungary
