Lars P. Syll — Wynne Godley on the euro project

If Europe is not to have a full-scale budget of its own under the new arrangements it will still have, by default, a fiscal stance of its own made up of the individual budgets of component states. The danger, then, is that the budgetary restraint to which governments are individually committed will impart a disinflationary bias that locks Europe as a whole into a depression it is powerless to lift.

Lars P. Syll’s Blog
Wynne Godley on the euro project
Lars P. Syll | Professor, Malmo University

Sharmini Peries interviews Michael Hudson — IMF Meeting Review – Austerity to Cost

Sharmini Peries, Exec. Producer, TRNN interviews Michael Hudson. Video and transcript.

michael-hudson.com
IMF Meeting Review – Austerity to Cost

Michael Hudson | President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, and Distinguished Research Professor of Economics at the University of Missouri, Kansas City

Lord Keynes — Liquidationism and early 1930s Germany: Not a Good Mix!

Eye-opener. It was not the Weimar hyperinflation that brought Hitler and the Nazis to power but deflationary depression.

By 1928, during the economic boom in Germany, the Nazi party vote looked like it was almost dead and was only 2.6%. Remarkably, even in the aftermath of the Weimar hyperinflation in 1924 it was only 3%. 

When the deflationary depression struck Germany from 1929–1932, it soared to 18.3% (September 1930), then 37.3% (July 1932), and finally to 43.9% in March 1933 in the aftermath of the Great Depression.

Social Democracy For The 21St Century: A Post Keynesian Perspective
Liquidationism and early 1930s Germany: Not a Good Mix!
Lord Keynes

Ominously, deflationary depression threatens Europe again owing to austerity and the persistent German anti-inflation fetish. Some lessons are never learned.

See also Yves Smith,  Is the West Risking Financial Blowback From Sanctions on Russia? at Naked Capitalism.

Matt O'Brien,  Europe’s Greater Depression is worse than the 1930s at the Washington Post.