More on the positives of the European Crisis

Via Mark Thoma, a more well written thorough (fact backed) perspective on the net positives for the European crisis: here.

Bottom Line:  The European crisis, by keeping US interest rates in check and oil prices low, may do more to help the US recovery than hurt it.  In the process, however, we would expect the flip side of the resulting capital inflows into the US to emerge – namely, a rising external imbalance.  Arguably, this simply shifts the ultimate adjustment to sometime in the future.  Again.

Same ideas, but I published first!

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