Nora Gordon

Econ- Article Reviews

Due: Thursday September 13, 2012

Northern Gripes

This article is important because it illustrates how even though countries are

connected in the EU they still have independent issues within their economies. Not 

all countries in the EU have the same central economic structure, focus or plan,

which causes tension and disparities during times of crisis.

The underlying conclusion made by the author is that being part of the EU

can be controversial. Some countries are hurt more by being apart of it but in the

end still may support the structure. The article primarily focuses on Finland, where

their economic is doing significantly better than their counterparts so they are

contesting having to bail other countries out. Yet even so the Finns still generally

favor being a member of the EU for benefits for unions and corporations.

I found it interesting that the countries in the EU don’t need to have all the

same economic structure and plans. The article mentioned that Finland “played by

the rules” but other countries did not, which is a cause for the major recession. I also

find it interesting that with different perspectives, economies that appear to be

strong are actually weak and vice versa.

Not Too Little, Possibly Too Late

This article is important because it displays how countries or unions act in

the final stage of crisis. As the article mentioned, the ECB is now introducing their

last resort, a mechanism that will hopefully turn the economies around.

The conclusion of the author is that this bond purchase program may be a

success but only to a certain extent. Due to the late stages of economic disparities

these countries in the EU face, there is only so much policy can do to turn the

economies around. Overall instability and weakness within the independent 

countries will have to change for a real turn around to appear. While the ECB may

 

have helped stop things from getting worse, this new program may take more time

and effort to see real results.

I found it interesting that the ECB’s actions are clearly not in their mandated

area of control. It’s intriguing that only Germany was truly against them

overstepping their boundaries.

Boxed In

This article is important because it shows how beneficial international trade

is and how it limits economies when the amount of trading is lowered. It is also

important because it illustrates the overarching theme of how all economies are

affected by one another.

The author’s main point is that trade and GDP are closely related but because

of other factors, they are directly and perfectly associated with one another. Also

certain economies, like those in Europe, have withdrawn from trade because they

might not want to convert money or experience a lag between exporting and

receiving money and because they want to focus on fixing domestic problems.

I think it is interesting to see how countries act in times of crisis. While

international trade could be beneficial to various economies, many countries are

scared their neighbors will benefit far over them and are implementing actions of 

protectionism. Countries are fretting and therefore causing problems with their

neighbors while they really could be helping one another.