In sickness and in health: protecting and supporting public investment in Europe
Francesca Barbiero, Zsolt Darvas. The long-term decline in gross public investment in European Union countries mirrors the trend in other advanced economies, but recent developments have been different: public investment has increased elsewhere, but in the EU it has declined and even collapsed in the most vulnerable countries, exaggerating the output fall. The provisions in the […]
Sticky Situations
Krugman, Paul. David Glasner has a thoughtful post about wage stickiness, afavorite topic of mine. And he is partially right in suggesting that there has been a bit of a role reversal regarding the role of sticky wages in recessions: Keynes asserted that wage flexibility would not help, but Keynes’s self-proclaimed heirs ended up putting downward nominal wage […]