The downgrade of France's debt to "AA+" from "AAA" has the French government reviewing and changing its economic strategy.
According to Le Figaro, the Prime Minister of France -- Francois Fillon -- says the rating agencies (e.g., Standard and Poor's, Moody's, etc.) are useful barometers, but they do not make policy for France. France is improving its economic competitiveness and growth opportunity.
Additionally, the failure of Europe to find an economic solution to the current crisis is believed to have contributed to the downgrade of France's debt.
(It is worth noting that the current account imbalances among the nations of the European Monetary Union have not been addressed. The CA imbalances are an integral part of the European economic crisis. See Paul Krugman's post on Europe's CA imbalances here and here.)
Visot, Marie. "Privée de AAA, la France adapte sa stratégie." Le Figaro.fr 15 January, 2012: online edition French.
Related information:
Current account aperçu.
According to Le Figaro, the Prime Minister of France -- Francois Fillon -- says the rating agencies (e.g., Standard and Poor's, Moody's, etc.) are useful barometers, but they do not make policy for France. France is improving its economic competitiveness and growth opportunity.
Additionally, the failure of Europe to find an economic solution to the current crisis is believed to have contributed to the downgrade of France's debt.
(It is worth noting that the current account imbalances among the nations of the European Monetary Union have not been addressed. The CA imbalances are an integral part of the European economic crisis. See Paul Krugman's post on Europe's CA imbalances here and here.)
Visot, Marie. "Privée de AAA, la France adapte sa stratégie." Le Figaro.fr 15 January, 2012: online edition French.
Related information:
Current account aperçu.
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