Sunday, October 30, 2011

The Greek Bailout

I have been in Germany for three weeks, and there is a lot of tension about Greece and the euro situation. Germany is doing well economically, but they worry that their progress will be derailed. My students are ambivalent about Greece leaving the euro zone, but are generally in agreement that Germany should stay in. Getting out would leave them with a strong currency which would hurt their exports. And, Germany lives on exports. The macro statistics say that the Germans don't buy much, but stores selling expensive clothing and jewelry are everywhere and are opening every day. I wonder how some of them stay in business.