1. Mundell-Fleming
1. Mundell-Fleming
Readings
A Working Model?
Germans are working 20% less hours than Americans, yet the European Central Bank (ECB) based in Frankfurt are working around the clock in Frankfurt's Eurotower (base of ECB). Approaching 5 weeks until the Euro arrives, staff are working up to 70 hour weeks. Labour markets need to become much more flexible (perhaps setting an example themselves)
A licence to Lose Money
Issues for the Paper, Le Monde (France's Leading Centre-Leftist Paper) have begun to lay off 90 staff. Result of an internal remark in an issue (Hidden Face of Le Monde) towards their editor in chief, loosing their reputation amongst intellectual classes. At the time of writing already 150 million Euros in debt, likely to lose a further 35 million Euros.Their recovery strategy is selling off assets such as property whilst contemplating switching to morning from afternoon schedules.
Liberation, a left-wing daily, may lose 2 million Euros.
Le Fargo may too make a loss this year.
La Parisien-Au-jourd'hui, a tabloid has lost 50 million Euros in the past three years and is cutting jobs.
France-Soir, another tabloid is on the verge of bankruptcy.
L' Humanite, theCommunist Party's Mouthpiece is too.
Those making profits:
Only two business dailies,
Les Echos, owned by Pearson (part-owner of the Economist)
La Tribune, owned by LVMH, a luxury goods conglomerate
L' Equipe, a sports paper
La Croix, a catholic daily
French newspapers are only selling fractions of that of their British counterparts as a decline of advertising revenue persists.
France's newsstand distributor is an inefficient monopolist (The Nouvelles Messageries de la Presse Parisienne). Unions wield considerable power. France are responding through subsidies and an official report, the French press benefit from many direct & indirect handouts.
Some regional papers receive up to 15% of their revenue from the government. The national post office operates delivers papers at a loss and journalists enjoy hugely generous tax breaks. The government has budgeted and expected to spend 278 million Euros on newspaper subsidies