European Imbalances

This was a little difficult because I didn't want to make a big messy graph (or a few messy graphs) or a whole bunch. So, to generate the graph below I first normalized each country's revenue and expenditure figures to the 2000 values of revenue. So, in 2000, each country had revenue = 100% and expenditure equal to the percentage of revenue generated. Some above, some below 100%. Then, I averaged the figures according to the former groupings: using Euro or own currency, and then within Euro PIIGS and non-PIIGS. If using own currency, then above (bad) average credit spreads or below (good) average credit spreads. Dig it.