Not just any old economists mind you. These are Nobel winning economists no less, who have launched an attack on the Eurozone’s economic strategy, warning that contractionary policies risk years of depression and a fresh eruption of the debt crisis.
Professor Peter Diamond, the world’s leading expert on unemployment says at a gathering of Nobel laureates at Lake Constance.
Historians are going to tar and feather Europe’s central bankers.Young people in Spain and Italy who hit the job market in this recession are going to be affected for decades. It is a terrible outcome, and it is surprising how little uproar there has been over policies that are so stunningly destructive
It could be avoided with better use of stimulus, and spending on infrastructure. That would boost growth and helped the debt to GDP ratio
While Professor Stiglitz offered:
There is a risk of a depression lasting years, leaving even Japan’s Lost Decade in the shade. The eurozone economy is 20% below its trend growth rate
I am very concerned about the future of monetary union, and they haven’t yet felt the impact of geopolitical tensions
Plenty of food for thought from this piece in The Telegraph from everyone’s fave commentator (!) AEP
