Krugman on European Financial Suicide

[David Morris]

On Tue, Apr 17, 2012 at 4:16 PM, alice wellintown
<alicewellintown at gmail.com> wrote:
> So get an education in this stuff. Where? Lotz of places, but try the IMF.

http://www.nytimes.com/2012/04/18/world/europe/debate-grows-as-europe-fears-return-of-fiscal-crisis.html?_r=1&ref=world#

BERLIN — The European financial crisis has shown signs of reigniting
in recent days, sharpening the debate between the champions of
austerity and a growing chorus urging more expansionary policies to
promote growth.

Even the traditionally hard-line International Monetary Fund called on
Tuesday for stronger European nations to ease the fiscal brakes by
stretching out budget cuts over a longer period. But if that message
was intended foremost for Germany, it seemed destined to fall on deaf
ears.

[...]

The German government does not have a mandate to share further the
burden of the common currency on less competitive economies like those
of Greece, Portugal, Ireland and, increasingly, Spain and Italy.

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The survival of the Euro is in danger chiefly because of this last
statement about Germany.  If the States in the US didn't have the will
to share their wealth (and pain), we'd be like Europe.  If the US
didn't have a Central bank with the freedom to manipulate the value of
our currency, we'd be like Europe.  It's a damned good thing we're
not, in the above two cases.

David Morris