Export growth is down sharply, turning negative vis à vis the eurozone s periphery.

Nonetheless, the German model does hold some useful lessons for the eurozone s embattled peripheral countries today.

That is why interest rate spreads in the eurozone periphery are widening again now.

But now it is permeating the eurozone s core. And in the US, even if President Barack Obama and the Republicans in Congress agree on a budget plan that avoids the looming fiscal cliff, spending cuts and tax increases will invariably lead to some drag on growth in 2013 at least 1 of GDP.

The creditors imposition of strict austerity on the periphery is perpetuating the eurozone s division between center and periphery.

This may seem extreme, but it simply recognizes the reality that much of the existing debt will not be paid back without new flows of official financing.

The peripheral countries external deficits are falling rapidly, thus diminishing the need for foreign financing.

This pressure on the peripheral countries to deflate their already stagnant economies is turning into the eurozone s greatest challenge.

Throughout the crisis, it has been widely assumed at least so far that the eurozone core would remain solid, and would continue to write the checks for the periphery s distressed governments and banks.

The Germans have been insisting on institutional change more centralized eurozone control over periphery banks and government budgets in exchange for expanded access to financing for the periphery.

The eurozone crisis will not be resolved until this internal imbalance is reduced to a sustainable level, which requires not only fiscal adjustment in the troubled peripheral economies, but also balance of payments adjustments across the eurozone as a whole.

How could a eurozone supervisor be based outside the eurozone?

Not surprisingly, increased emigration to the stronger eurozone countries (such as Germany) has been accompanied by higher outflows of financial capital.

Political risks in the eurozone s periphery include the collapse of Italy s government and a fresh election as a result of former Prime Minister Silvio Berlusconi s criminal conviction.

Scotching the Eurozone

The Eurozone s False Recovery

Poland s Eurozone Tests

A Survival Strategy for the Eurozone

Growing Up in the Eurozone

Judgment Day for the Eurozone

The Eurozone s Autumn Hangover

The Eurozone s Last Stand

So, leave the Eurozone.

German officials now understand that, given extensive trade and financial links, a disorderly eurozone hurts not just the periphery but the core.

The Government the Eurozone Deserves

Demokratisasi di Eurozone

Signs of Life in the Eurozone

Optimizing the Eurozone

The Eurozone s Narrowing Window

Indicators for the eurozone are even worse.

Brady Bonds For the Eurozone

Decision Time for the Eurozone

Democracy versus the Eurozone

The Eurozone s Agenda in 2013

Rebalancing the Eurozone

The Eurozone s Strength in Disunity

A Breach in the Eurozone Dike

The Eurozone s Delayed Reckoning

Three Ways to Save the Eurozone

And the whole strategy of leaving the Eurozone,

That, in turn, implies the need for a real exchange rate adjustment inside the eurozone, with peripheral countries production costs falling relative to those in the core.

Eurozone leaders must recognize that spending cuts will do nothing to stabilize the balance sheets of core country banks that are over exposed to peripheral countries sovereign debt.

First, the eurozone authorities misread the real causes of the debt crisis, which stemmed mainly from a growing competitiveness gap between the core and periphery countries.

Without external constraints, public and private expenditure grew precipitously in many countries on the eurozone periphery, while wages rose faster than productivity.

Moreover, balkanization of economic activity, banking systems, and public debt markets continues, as foreign investors flee the eurozone periphery and seek safety in the core.