The Eurozone as A Koan
The Eurozone problem is something of a koan; full of paradoxes and contradictions that cannot be understood in terms the prevailing orgrammar (organizational grammar).
The Eurozone problem is something of a koan; full of paradoxes and contradictions that cannot be understood in terms the prevailing orgrammar (organizational grammar).
The International Monetary Fund statistics for 12 eurozone countries is analyzed in order to assess the degree of changes synchrony under the crisis influence of such macroeconomic indicators as GDP growth, public debt, inflation level, unemployment and the current account operations. To quantify the observed changes, the values of Kendall concordance coefficient are calculated in equal intervals of time before and after the crisis beginning. Comparison with similar indices changes in groups of countries at a lower level of financial integration was accomplished. On the basis of received results the author discusses hypothesis about the origin of evident systemic economic turbulence in the eurozone under the crisis influence, which led to financial integration level decrease.
Financial institutions are special casino, privileged bookmakers, because governments give them the guarantees: in case of insolvency, they will be saved.