See if you can spot the subtext, then let us pause and admire Fatas

My grovelling apology to Herr Schäuble

(link)

Krugman elaborates here.  This piece by Antonio Fatas is also helpful.


Apropos of that, Fatas is bloody brilliant and I've read every one of his blog posts from the last six months today.  I have always wondered why Spain stayed in the Euro, when it had done everything "right" and yet has been asked (told) to take the worst of the punishment.  He explains, or at least offers a big clue, here (see point #3).

This semi-confessional on how to teach inflation is also wonderful.