Sunday, January 28, 2007

The Tale of Two Diverging Economies


Chris Giles and Ralph Atkins of Financial Times tell the tale of two diverging economies.

While there are many "good examples of the new European economy: robust, diversified and able
to sustain growth without a US motor...anecdotes cannot supply
conclusive proof of Europe’s new resilience," they write. "In recent months, the debate has been fierce, with opinion among
economists split roughly equally between optimism and pessimism." Wild differences seem to be part of the common course when it comes to much of economic opinion. It seems that Europe is finding its own internal growth engines, and having continually improved its infrastructure and expanded on trade with others while paying very little military tax, it has braced itself to weather changes.

A similar story by Marcus Walker appears on page one of The Wall Street Journal on December 6: "Europe is Giving Global Economy A Surprise Boost Amid U.S. Lull."

In the meantime, ties remain and mutual investment between the two economies has dwarfed all others.

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