Paul Krugman, Laureate of the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2008 at a press conference at the Royal Swedish Academy of Sciences in Stockholm (Photo credit: Wikipedia)

European flag outside the Commission (Photo credit: Wikipedia)

This is a GOOD READ from Nobel Prize winning, liberal, economist, Paul Krugman, writing in his op-ed column in the NYT. Check it out!

via Is There Any Point To Economic Analysis? – NYTimes.com.

The debate about “structural” versus “cyclical” unemployment is especially relevent in Europe for three reasons.

Firstly, demand management, like fiscal policy has not been deployed effectively in Europe causing unnecessary unemployment.

Secondly, unemployment in Southern Europe has been caused directly by the Euro policies of excessive regulation of the ECB and the European Commission.

Thirdly, economists are under-weight in Germany where lawyers hold greater sway.

Any thoughts?

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