Econ Articles 2
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Transcript of Econ Articles 2
Nora Gordon
Econ- Article Reviews
Due: Thursday September 13, 2012
Northern Gripes
This article is important because it illustrates how even though countries are
connected in the EU they still have independent issues within their economies. Not
all countries in the EU have the same central economic structure, focus or plan,
which causes tension and disparities during times of crisis.
The underlying conclusion made by the author is that being part of the EU
can be controversial. Some countries are hurt more by being apart of it but in the
end still may support the structure. The article primarily focuses on Finland, where
their economic is doing significantly better than their counterparts so they are
contesting having to bail other countries out. Yet even so the Finns still generally
favor being a member of the EU for benefits for unions and corporations.
I found it interesting that the countries in the EU don’t need to have all the
same economic structure and plans. The article mentioned that Finland “played by
the rules” but other countries did not, which is a cause for the major recession. I also
find it interesting that with different perspectives, economies that appear to be
strong are actually weak and vice versa.
Not Too Little, Possibly Too Late
This article is important because it displays how countries or unions act in
the final stage of crisis. As the article mentioned, the ECB is now introducing their
last resort, a mechanism that will hopefully turn the economies around.
The conclusion of the author is that this bond purchase program may be a
success but only to a certain extent. Due to the late stages of economic disparities
these countries in the EU face, there is only so much policy can do to turn the
economies around. Overall instability and weakness within the independent
countries will have to change for a real turn around to appear. While the ECB may
have helped stop things from getting worse, this new program may take more time
and effort to see real results.
I found it interesting that the ECB’s actions are clearly not in their mandated
area of control. It’s intriguing that only Germany was truly against them
overstepping their boundaries.
Boxed In
This article is important because it shows how beneficial international trade
is and how it limits economies when the amount of trading is lowered. It is also
important because it illustrates the overarching theme of how all economies are
affected by one another.
The author’s main point is that trade and GDP are closely related but because
of other factors, they are directly and perfectly associated with one another. Also
certain economies, like those in Europe, have withdrawn from trade because they
might not want to convert money or experience a lag between exporting and
receiving money and because they want to focus on fixing domestic problems.
I think it is interesting to see how countries act in times of crisis. While
international trade could be beneficial to various economies, many countries are
scared their neighbors will benefit far over them and are implementing actions of
protectionism. Countries are fretting and therefore causing problems with their
neighbors while they really could be helping one another.