Has Italy Really “Gone Back Into Recession”? | Jeffrey Frankel’s Blog

Countries using the Euro de jure Countries and...

Countries using the Euro de jure Countries and territories using the Euro de facto Countries in the EU not using the Euro (Photo credit: Wikipedia)

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:

  1. Reduced austerity; and
  2. Supply-side reform

Thoughts?

British austerity is no model for the rest of the world – Larry Summers – FT.com

White House portrait of Lawrence Summers.

White House portrait of Lawrence Summers. (Photo credit: Wikipedia)

This is a MUST-READ article by Larry Summers,  Charles W Eliot university professor at Harvard and a former US Treasury secretary. It’s published in the FT.

 

Brtish austerity is no model for the rest of the world – FT.com.

 

Personally, I agree with Larry Summers but feel that he’s been too polite by far.

For me, David Cameron’s UK Government has been reckless in stimulating demand on the back of a government guaranteed domestic property inflationary bubble. This blog has been advocating, for  some time, wider policies that addressed  skills, competitiveness and  exports.

Let me turn this to an open question:

Given the UK‘recent increase in economic growth, how should government policy be changed to broaden and deepen the growth so that it is sustainable for a longer period?

Any thoughts?

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