Austerity takes a greater toll on GDP during a deleveraging crisis than orginally thought, doubly or triply so in countries that cannot devalue or cushion the blow with monetary stimulus.
Comment:
Could it be that leveraging caused the problem in the first place? I don't know about Europe, but in America, we have a fractional reserve system. That is leverage. I am persuaded that leverage is asking for trouble, because it tends to magnify failure in a cascading event that we are observing.
If it is based upon ideology, as the title suggests, it is another example of how ideology can make you stupid.
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