The BBC contacted us earlier in the week about our September post, La Grande Divergence, which included the following chart. Vicky Pryce, the influential U.K. economist, liked enough to choose it as her favorite of the year. BBC journalists will review the charts on tonight’s Newsnight show.
All credit to Desmond Lachman at the AEI. Check out the BBC’s collection of top charts here, which includes Ken Rogoff’s fave of a long times series, back to the 19th century, of global debt, inflation, and defaults.
“For a long time the perception was that the creation of the euro meant sovereign risk was effectively the same across all countries. That of course proved to be wrong. The Lehman’s crisis and financial meltdown that followed affected the deficits and debt levels of different countries in different ways. Interestingly it is much the same countries now with very high yields as it was pre-euro, suggesting little has changed fundamentally in a decade.” VICKY PRYCE, SENIOR MANAGING DIRECTOR FTI CONSULTING
(click here if chart is not observable)