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Policy Brief

Rebalancing Works: The Prospects for the Eurozone Reconsidered

August 20, 2012

Jürgen Matthes

According to mainstream analysts in the United States, and occasionally those in Britain, there is little chance that the eurozone will be able to correct its economic imbalances. But, Jürgen Matthes argues in this policy brief, the U.S. debate about the eurozone is filled with misunderstandings, questionable claims, and clichés, leading to overly skeptical conclusions. In fact, Matthes maintains, the trade balances in the southern euro countries have improved considerably, more so than is often conveyed in the public discourse.

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