Saturday, November 17, 2012

Krugman 2, US 1, Europe 0

The results of the great austerity experiment keep on coming in, and the Austerians keep winding up with egg on their faces. The US, which got a mini-Keynesian stimulus package and some monetary radical action is not in great shape, but it's a lot better off than Europe, which careens toward another recession even as it's South plunges into deepening depression.

Krugman has a series of posts documenting the catastrophic results (here, here, and here, for three) of European economic policies.

I am a bit puzzled though, by his insistence on attributing Europe's wayward course to mistaken economic theories. To be sure, the theories are there, and serve as convenient rationalizations, but I suspect the reality is just that the European economy is being managed for the short term profits of bankers and the pacification (or mystification) of German voters.