On top of that, the Fed policymakers face an unusually uncertain environment. Though the White House threats to impose tariffs on all Mexican and Chinese imports are pressuring the economy, a resolution to those conflicts could quickly end the damage they might be causing. In that case, the Fed might have cut rates prematurely..
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Besides being a serious obstacle to the long run economic potential of many Euro economies, I believe that excessive labour regulation (and not the Euro) has played a determinant role in the truly tragic situation which many periphery Euro countries face today. Figure 1 shows us how unemployment rates in the periphery countries have increased dramatically after the Great Recession. As we saw in Table 1, Iceland and Ireland suffered as much as Greece in terms of GDP loss.
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