Friday, April 17, 2015
Germany's Finance Minister Offers His Views On Eurozone Economic Policy
The economic policies that were pursued by the EZ member states were the correct policies according to Germany's finance minister. He explains why they were the correct policies and defends them against those who claim that they have been a burden on the EZ recovery. He holds Ireland and Spain up as examples of countries took the proper steps which led to their strong recoveries. He also defends Germany's economic policies against critics who believe that Germany could have done more to stimulate economic growth. He also announced that several top economists would participate in the next Finance Minister meeting. Paul Krugman has been one the major critics of the economic policies that inspire Germany's Finance Minister. He claims that Keynesian policies have helped the US economy to recover more quickly from the recession. Its unlikely that there will be many Keynesian economists invited to the meeting of eurozone finance ministers. Krugman believes that politicians select economists who tell them what they want to hear. That may be true, but Keynesian economic theories never took root in Europe as they did in the US. That is especially true in Germany.