military experts
EnglishРусский中文(简体)FrançaisEspañol
Set as default language
 Edit Translation

The press in Germany talked about a paradoxical situation in the European economy

The press in Germany talked about a paradoxical situation in the European economy
In the German press published an article, which deals with the financial and economic situation in Germany in connection with the pandemic coronavirus. In the edition of Die Zeit published an article by columnist Mark Shirittsa, which argues on economic uncertainty.

Shiritts writes, the German government this week to allocate almost 1,4 billion euros in guarantees, credits, grants and other financial assistance to support the industry and business. Other European countries are following the same path. While factories are forced to stop production due to pandemic. But the allocation of state funds – it is actually a violation of the basic law of a liberal economy, on the protection of which has always been Europe – State intervention in economic processes.

The author reports that, in Germany and Europe as a whole recorded an avalanche decline in demand for the whole range of goods and services. On the other hand, suspension of the industry can lead to a restriction of supply on the market, and already leads. The same medical masks, medicines, medical equipment, Personal Care Products, Food.

There is a paradoxical situation in the economy, when on the one hand the consumer almost nothing (except the bare necessities) buys, On the other hand - the manufacturer is practically nothing to offer him for the purchase of.

Mark Shiritts offers to reflect on, Why then this will result in a paradoxical situation, when the shortage of goods and services face rising inflation and at the same time a drop in demand could lead to deflation. In this situation, investors simply goes around the head: whether it makes sense to invest in business projects credit facilities, If there is absolutely no understanding, in which way these projects will start to move, I do not to collapse at the first stage.

According to a German journalist, the answer to these questions depends on the duration of the economic crisis and economic uncertainty. But the problem is, that today, no one will undertake to say exactly in the world, how long the crisis will last.

A source

                          
Chat in TELEGRAM:  t.me/+9Wotlf_WTEFkYmIy

Playmarket

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 comment
Inline Feedbacks
View all comments