Blog
OCR F585 June 2011: Euro Area on the Rocks?
11th April 2011
Is the Euro Area on the rocks? Yes according to economist Roger Bootle writing in the Telegraph. He argues that there are four facets to the Euro Area crisis - debt, uncompetitiveness, property price deflation and fragility in the European banking system. These are themes well known to students preparing for the OCR F585 paper in a few weeks time.
“Given the multi-faceted nature of the euro’s problems, this mixture of depression and deflation is extremely dangerous. Because it reduces aggregate demand, fiscal austerity will intensify the downward pressures on house prices and undermine the quality of banks’ assets!”
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Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.