The Interpretation of Daniel 2:41-43 Through A Cointegration Analysis of the Eur
Keywords:CEP (core economic power), € (Euro currency), EU (European Union), GII (global innovation index), PEP (potential economic power), PM (peripheral member), MIPM (more innovative peripheral member)
Daniel’s interpretation of King Nebuchadnezzar’s dream about the statue’s feet and toes crushed by a rock cut out of a mountain, represents how God will crush all those kingdoms and bring them to an end. Using historical, biblical, and econometric analysis in the positioning of the economic power of the European Union (EU), the study fundamentally presented suggestion of potential disintegration among the member countries’ economic indicators; particularly the Eurozone’s balance of payment problems, rising sovereign debts, deteriorating banking performance, unemployment, and wider income inequality, which all indicated strong cointegration as good predictors with the following medium-term equilibrium equation: y (EU’s GDP=1, t) = a0+β1(y CA=0.139, t)+β 2(y CAP=4.926, t)+β 3(y FDI=0.653, t)+ β 4(y D=1.191, t)+β 5(y CRE=4.558, t)+ β 6(y NPL=0.777, t)+ β 7(y IIQ=0.954, t)+et. From the matrix of economic panel data, GDP or gross domestic product (in ppp or purchasing power parity) and global technological innovation index indicate that Germany and French are the core economic power in the EU with the Italy as a potential economic power. The gap between the strong and weak seems to be economically wide as what the prophecy says as a mixture of clay and iron.