This is an excellent, HIGHLY RECOMMENDED READ from Achim Truger, published in the Social Europe Journal.
Personally, I very much identified with the thrust of Achim Truger’s argument. More and more top German economists are expressing similar views. Many of these views have been expressed quite forcefully outside Germany for a number of years.
Unfortunately, the challenge is to turn the views of the German people, sharing the evidence of economics, rather than Ma and Pa household economics. In my judgement, the German political classes have not been entirely candid with the German people.
With overwhelming opinion now critical of the excessive austerity policies of the European Commission and the Troika, Angela’s Merkel’s new Government urgently needs to take the initiative in Europe. There are opportunities to limit the damage from austerity and put the European Commission back in it’s box.
I suppose the interesting open question is:
- ECB ready to print, Germany ready to scream (blogs.telegraph.co.uk)
- There is only one way to end Europe’s economic woes. Germany needs to buy more stuff. (washingtonpost.com)