Capitulation Questions and Reader Mailbag

In an article by Wolfgang Munchau appearing on Eurointelligence.com, the case is made that Europe (particularly the Eurozone) will experience a withering pace of growth during the recovery phase of this global economic crisis.

Besides all the reasons given for why Europe will flop around like a fish on dry land, this point was made:

“Both the US and Europe will go through an adjustment period, during which growth will be lower. The US will be first to recover: it is a more dynamic economy, has a more coherent framework for macroeconomic policy, and, unlike the EU, has a genuine internal market which is not unraveling.”