This is a recommended read from noted, Harvard, international macro-economist, Jeffrey Frankel. Check it out!
Has Italy Really “Gone Back Into Recession”? | Jeffrey Frankel’s Blog.
Frankel argues that Italy has been in one continuous decline since 2008.
This makes a mockery of the policies of the troika, namely the IMF, the ECB and the European Commission.
Solutions for Frankel are simple:
- Reduced austerity; and
- Supply-side reform
Dr Alf raises an interesting set of points and is right about Italy’s need for reform.
Of course, if Italy has been in decline since 2008 then so has Portugal, Greece, Spain and Britain except for the recently engineered pre election boom which will run out of steam in May 2015.
Europe and Italy needed to cut back hard for 2 years, reduce taxes and then after the deficit was cleared in a massive Big Bang approach start exporting and earning foreign exchange by making more things that people want and selling them to South America,Asia and the Middle East creating and using their own replicas of Germany’s Mittelstand.
Europe apart from Germany failed to do any of this imagining it could cut its way to prosperity.
The results are abject failure and are plain for all to see.
Reblogged this on Catholic Glasses.
Thanks for the reblog 🙂 Have a good weekend!