Odd Lots Lots More With Isabella Weber on Draghi's EU Competitiveness Report
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Sep 13, 2024 Isabella Weber, an economics professor at the University of Massachusetts Amherst, shares insights on Mario Draghi's report aimed at boosting Europe’s competitiveness. They discuss the pressing issue of fiscal austerity and its impact on growth, as well as the challenges in the European energy market amidst high gas prices. Weber emphasizes the need for collaborative approaches in the green transition and critiques Europe’s national strategies over global expansion. The conversation also touches on the decline of Chinese EV companies and Eurozone tensions.
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US vs. Europe Post-Crisis
- The US and European economies diverge further with every crisis.
- Europe accepts lower economic potential after shocks, unlike the US.
German Austerity
- German fiscal austerity is deeply rooted in cultural narratives of saving, influenced by Prussian virtue and Nazi propaganda.
- This is linked to the "Swabian housewife" narrative, equating personal and state spending.
Draghi on Energy
- Draghi suggests decoupling energy prices and gas derivative markets, addressing volatility and non-fundamental price fluctuations.
- He also advocates for Europe using its monopsony power to get lower gas prices.