Monday, December 1, 2014
Europe Is Paying A Price For The Cost Of Bad Ideas
Paul Krugman rejects the idea that the eurozone is having economic problems because of the irresponsible behavior of some of its member nations. With the exception of Greece, Krugman does not see a competitiveness problem or fiscal irresponsibility as the root problem in the eurozone. He argues instead that Germany is exporting deflation to its neighbors, and that it is imposing its bad economic ideas on the rest of the eurozone. Unfortunately, policy makers in the eurozone have bought into the economic ideas being sold by Germany. In Krugman's mind, German economic ideology resembles the economic ideology that emanates from the University of Chicago in the US.