Holland, Dawn, Portes, Jonathan.
EU governments have individually embraced severe austerity programmes in an effort to avoid becoming the next Portugal. This column presents results from the National Institute Global Econometric Model suggesting that the individually rationale polices are leading to collective folly. Keynes’ ‘paradox of thrift’ is in full swing since EU nations continue to act like small open economies while in fact they are a large closed economy.
Πηγή: Voxeu