Tuesday, September 24, 2013

Financial Times — The economists’ warning

ThIt is essential to realise that if the European authorities continue with policies of austerity and rely on structural reforms alone to restore balance, the fate of the euro will be sealed. The experience of the single currency will come to an end with repercussions on the continued existence of the European single market. In the absence of conditions for a reform of the financial system and a monetary and fiscal policy making it possible to develop a plan to revitalise public and private investment, counter the inequalities of income and between areas, and increase employment in the peripheral countries of the Union, the political decision makers will be left with nothing other than a crucial choice of alternative ways out of the euro.
Real-World Economics Review Blog
The economists’ warning
Financial Times, September 23 2013
Emiliano Brancaccio and Riccardo Realfonzo (Sannio University, promoters of “the economists’ warning”), Philip Arestis (University of Cambridge), Wendy Carlin (University College of London), Giuseppe Fontana (Leeds and Sannio Universities), James Galbraith (University of Texas), Mauro Gallegati (Università Politecnica delle Marche), Eckhard Hein (Berlin School of Economics and Law), Alan Kirman (University of Aix-Marseille III), Jan Kregel (University of Tallin), Heinz Kurz (Graz University), Alfonso Palacio-Vera (Universidad Complutense Madrid), Dimitri Papadimitriou (Levy Economics Institute), Pascal Petit (Université de Paris Nord), Dani Rodrik (Institute for Advanced Study, Princeton), Willi Semmler (New School University, New York), Engelbert Stockhammer (Kingston University), Tony Thirlwall (University of Kent).

1 comment:

mike norman said...

I don't see how they come to the conclusion that the euro (the currency) is finished based on their arguments. Unless member states start pulling out--and all throughout this disaster there has not been any indication that anyone will, despite the economic hardships--the euro will go on existing as a very viable currency. What the authors describe is a broad dystopia brought about by long-term austerity, but ironically, that lack of spending and push for sustained budget surpluses will only serve to strength the euro as it makes it harder to get.