Eurozone Still in Thrall of Monetarism and Tight Budgets

alex.foti — Fri, 24 Apr 2009 05:58:13 +0000

One would think that with millions of unemployed and riots everywhere, the Germans would drop their obsession with inflation and start expanding deficits to counter falling demand in the eurozone. I mean, ok for Ossie Merkel who was brainwashed by free-market orthodoxy since she was a teen (remember the flat tax hogwash?), but how could it be that finance minister and vice chancellor Steinbrück worries about deficits and inflation instead that unemployment and inequality? A Maastricht-loving socialist is a contradiction in terms! If the rosé European left wants to revive its fortunes it’s time it abandons monetarism, spends money for a new welfare state, and tells Frankfurt to get lost. Time for Europe to have a new, keynesian, central banker.

Great Recession » keynesianism

Eurozone Still in Thrall of Monetarism and Tight Budgets