Comments on Europe and thoughts on the cyclical recovery in the US

Daily commentary: 2013-03-01
Europe is in recession right now, but the US is in a weak but fairly long-lived economic recovery. The difference in economic fortunes owes entirely to differing policy responses in both regions. In Europe, the economic paradigm has favoured austerity as a policy tool. And the result has been fiscal retrenchment met with varying levels of additional private retrenchment - no confidence fairies here. That is the reason for the recessions across Europe. In the US, the policy response has been varying degrees of fiscal and monetary stimulus. And the result has been a muted recovery in both output and employment. The question is whether either of these policy paths is sustainable. I say no on both counts and want to address here why.

Now, I have already said a ...

As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.

Click here to join. Your readership is greatly appreciated!

Registered users can log in by entering details here or below.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More