Hope springs eternal in the hearts of the European optimists. Despite the fact that Europe is still mired in its longest post-war economic recession
and despite every sign that austerity fatigue now characterizes
Europe’s beleaguered periphery, the optimists cling to the hope that an
economic recovery is just around the corner and that somehow Europe will muddle through its economic and political crisis.
Sadly this optimism is not well grounded. Rather it rests on a series of myths, which time will tell are no different from the wishful thinking entertained by European policymakers over the past three years.
Today the economic policy mix in the European periphery is little different from its immediate past. Although there has been some relaxation in the budget austerity being required of euro members by the European Commission, one still has countries deep in recession being forced to pursue budget austerity within a euro straitjacket. And they are now being required to do so at a time that Europe’s credit crunch persists, the external economic environment has deteriorated, and the euro is now appreciating.
Read more: The Washington Post
Sadly this optimism is not well grounded. Rather it rests on a series of myths, which time will tell are no different from the wishful thinking entertained by European policymakers over the past three years.
Today the economic policy mix in the European periphery is little different from its immediate past. Although there has been some relaxation in the budget austerity being required of euro members by the European Commission, one still has countries deep in recession being forced to pursue budget austerity within a euro straitjacket. And they are now being required to do so at a time that Europe’s credit crunch persists, the external economic environment has deteriorated, and the euro is now appreciating.
Read more: The Washington Post
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