Eurozone and currency wars

Separately, Simon Tilford at the Centre for European Reform published a piece today: "What currency wars mean for the eurozone." He points out that the eurozone's trade with the rest of the world is roughly in balance and that nobody could accuse the European Central Bank of launching policies to weaken the euro. Mr Tilford points out that Germany blocked discussion of imbalances at the recent Group of 20 meeting, arguing that it's for deficit countries to put their own houses in order. That means countries such as Spain have to rely on demand from outside the eurozone to dig themselves out of their current predicament. "In short, the eurozone is relying on demand generated elsewhere in the world to bail it out," he writes.