This is another IMF nail (the IMF after all!) into the coffin for the nonsensical austerity policies and the “it’s all about competitiveness” mantra coming from the Troika and German politicians and economists. It’s the aggregate demand, stupid. End of story.GIGO
Happy Birthday Okun's Law!
Stephen Ewald
For in depth analysis, see Bill Mitchell, Okun’s Law survives 50 years – trouble for the neo-liberals
1 comment:
I agree basically. Though when “German politicians and economists” in referring to competitiveness are saying that the Eurozone’s main problem is competitiveness disparities that cannot be dealt with by devaluing or revaluing currencies, they are correct.
I’m constantly irritated by the number of so called “professional” economists who don’t seem to get the above point.
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