Further Austerity and Wage Cuts Will Worsen the Euro Crisis
AbstractThis note argues that the solutions to the euro-area crisis proposed by the EU governing institutions in cooperation with the IMF, based on further austerity and wage cuts, will worsen the crisis. They are unlikely to reduce both sovereign and external debt ratios of countries experiencing these problems. Quite in contrary, they are likely to further reduce the real GDP growth of these countries.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Policy Papers with number 37.
Length: 16 pages
Date of creation: Feb 2012
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Find related papers by JEL classification:
- E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
- E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
- E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
- E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
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Economics Working Papers
1342, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2012.
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- Ponticelli, Jacopo & Voth, Hans-Joachim, 2011. "Austerity and Anarchy: Budget Cuts and Social Unrest in Europe, 1919-2008," CEPR Discussion Papers 8513, C.E.P.R. Discussion Papers.
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- repec:ebl:ecbull:v:6:y:2008:i:25:p:1-11 is not listed on IDEAS
- C.J. Polychroniou, 2012. "Neo-Hooverian Policies Threaten to Turn Europe into an Economic Wasteland," Economics Policy Note Archive 12-01, Levy Economics Institute, The.
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