2 Quick Takes on International Stories in the WSJ

1. Global Currency Tensions Rise

Abe says Japan must defend “itself against attempts by other governments to devalue their currencies by ensuring the yen weakens as well.” I’m curious to see if the combination of these pressures in the US, UK, Japan, etc and the anti-inflationary bias of the ECB will result in an overpriced Euro and even tougher conditions for Eurozone countries.

2. French Youth Jobs Plan

President François Hollande has come up with a plan to ease the problem: give €4,000 ($5,276) a year for three years to small companies that hire a young person on a permanent contract while committing to keep an employee age 57 or over.

I’m not sure why they didn’t provide incentives for net new hires of young people, which does a better job of encouraging new hiring rather than paying companies that would hire  young people anyway. The former reduces the cost per new job.

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About ozidar

I'm an Assistant Professor of Economics at the University of Chicago Booth School of Business and a Faculty Research Fellow at National Bureau of Economic Research. You can follow me on twitter @omzidar. http://faculty.chicagobooth.edu/owen.zidar/index.html
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