Joseph E. Stiglitz says that the Europe will not recover unless and until the eurozone is fundamentally reformed.

In the Shapiro-Stiglitz model workers are paid at a level where they do not shirk. This prevents wages from dropping to market clearing levels. Full employment cannot be achieved because workers would shirk if they were not threatened with the possibility of unemployment. The curve for the no-shirking condition (labeled NSC) goes to infinity at full employment. (Photo credit: Wikipedia)

This is an excellent, MUST-READ, article by Joe Stiglitz, the Nobel Prize winning economist. Check it out!

via Joseph E. Stiglitz says that the Europe will not recover unless and until the eurozone is fundamentally reformed. – Project Syndicate.

This article is probably the best article that I have read on Europe’s economic crisis.