Suddenly they are all complaining. With an enormous delay, even the professional optimists in the German media have realised that something is fundamentally wrong. Germany is once again the sick man of Europe, the British Economist notes again, pointing to the decline in GDP this year. I am surprised, however, that liberal economists, who would call themselves neoclassical, do not participate much more actively in the debate and at least contribute important aspects to a theory of the crisis. But the neoclassical authors are always immediately on the wrong track because they do not want to admit the macroeconomic implications of their own theory and consequently blame the governments for the malaise. After all, markets cannot be wrong in principle and, if they are allowed to work, always lead quickly back to equilibrium.
Related Articles
Ann Pettifor: Britain’s flagging economy: is Brexit to blame?
“However, the evidence shows that—to date—it is austerity, not Brexit, that has had the most negative long-term impact on the British economy.” Read here
Desmond Cohen – Not in it together: the distributional impact of austerity
Are people being taxed fairly? Not in Britain. New data reveals how the tax and benefit changes made since 2010 have disproportionately fallen on the poorest, ethnic minorities, women, children and the disabled. Read here
Joseph Stiglitz: The euro could be nearing a crisis – can it be saved?
It is an odd world. Outside of Germany there is a consensus that the Eurozone is dysfunctional. Now we are seeing highly respected academics citing far-right – branded in Germany as fascists – being seen […]
Be the first to comment