Larry Elliot « Dr Alf's Blog

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)

German Logo of the ECB. (Photo credit: Wikipedia)

This is an excellent article from Larry Elliot, Economic Editor at the Guardian. It’s strongly recommended for a read. Check it out!

via European Central Bank must heed eurozone warning signs | Business | guardian.co.uk.

Here are Larry Elliot’s conclusions:

For the past three years, macroeconomic policy in the eurozone has been run on sadomasochistic principles: that only regular doses of pain will ensure countries stick to strict reform programmes.

The upshot of this policy is clear for all to see. Businesses that are starved of credit are mothballing investment and cutting their workforce. Weaker growth means higher-than-expected budget deficits. Permanent austerity has bred social dislocation and political extremism. A different approach is needed to save the eurozone from catastrophe – starting on Thursday.

Personally, I agree with Larry Elliot.

What do you think?

Are you still an austerian?

All view welcome!

English: George Osborne MP, pictured speaking on the launch of the Conservative Party manifesto for the 2009 European Parliament elections, at Keele University. (805×1207 px, 283,711 bytes) (Photo credit: Wikipedia)

One of a number of posters created by the Economic Cooperation Administration to promote the Marshall Plan in Europe (Photo credit: Wikipedia)

United Kingdom (Photo credit: stumayhew)

This is an excellent article from Larry Elliot in the Guardian and well worth a read. Check it out!

guardian.co.uk | George Osborne prepares for battle with the IMF.

For me, the time for heavy Keynesian intervention in Europe is way overdue both in stimulating investment in the UK and in transfers from North Europe to Southern Europe; a modern Marshall plan is needed now. Thank goodness there are a few prominent supporters of Keynes at the IMF.

What do you think?