The Fall of France – Paul Krugman – NYTimes.com – Best Blogs Series

Paris Opera full frontal architecture, May 2009

Paris Opera full frontal architecture, May 2009 (Photo credit: Wikipedia)

The Gare du Nord train station is the busiest ...

The Gare du Nord train station is the busiest in Europe. #ens_id=628859 “Recherche”. LeMonde.fr . #ens_id=628859 . Retrieved 2011-09-15 . (Photo credit: Wikipedia)

English: The palace of Luxembourg, in the Luxe...

English: The palace of Luxembourg, in the Luxembourg garden, Paris, at sunset. Suomi: Luxembourgin palatsi Luxembourgin puistossa Pariisissa auringon laskun aikaan. Français : Le palais du Luxembourg, dans le jardin du Luxembourg, à Paris, au coucher du soleil. Русский: Люксембургский дворец в Люксембургском саду, Париж, на заходе солнца. (Photo credit: Wikipedia)

Université Sorbonne de Paris vu depuis la plac...

Université Sorbonne de Paris vu depuis la place de la Sorbonne (Photo credit: Wikipedia)

This is a MUST-READ article from Nobel Prize winning, liberal economist, Paul Krugman, in the NYT. Check it out!

via The Fall of France – NYTimes.com.

Personally, I prefer Krugman when he focuses on economics, rather than venturing opinion on politics – his politics are colored by his liberal views. But his article on France’s economic performanceyesterday was excellent.

However, I must say that I agree that President Hollande has been a failure. Hollande has completely failed to live up to his anti-austerity rhetoric.

In my mind, we are witnessing German hegemony over Europe, via fiscal constraints. A similar point has been made by leading Oxford economist, Simon Wren-Lewis, using different language.

As I looked at the news this morning, every major newspaper and economic commentator seems to be again focusing on the Euro, vying for headline space. I am sure that speculators are sitting in the wings, looking to short-sell weak prey. Meanwhile, yesterday we learned that perhaps Germany might dilute austerity medicine in exchange for reform.

One last point, the new French Finance Minister is a thirty-seven year old former investment banker, so I fear he will understand the markets but alas perhaps not the people?

Thoughts?

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