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The Perils of Austerity

Paul Krugman, The New York Times | March 13, 2012

Greece's troubles have been used to promote a false narrative about deficits and austerity. ++ Greece has officially defaulted on its debt, even if in a negotiated manner. ++ But the story of Greece shows that while deficits are bad, slashing budgets in bad times is even worse. ++ Europe's periphery is now experiencing depressions caused by austerity. ++ Short of leaving the Euro, nations like Greece and Ireland have no good options.  ++ Germany and the European Central Bank should instead demand less austerity.

Tue, Mar 13th 2012, 19:53

Konstantina Kalliontzi, University of Macedonia, (10)

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I like this comment! What's this?

The policy designed for Greece and followed by Greece is actually the one no country should follow. The policy makers keep doing the same mistakes, although it is obvious not only to economy experts but also to citizens that this is the way to catastrophe.

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