Further Austerity and Wage Cuts Will Worsen the Euro Crisis
This 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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References listed on IDEAS
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- Arestis, Philip & McCauley, Kevin & Sawyer, Malcolm, 2001.
"An Alternative Stability Pact for the European Union,"
Cambridge Journal of Economics,
Oxford University Press, vol. 25(1), pages 113-130, January.
- Philip Arestis & Kevin McCauley & Malcolm Sawyer, 2000. "An Alternative Stability Pact for the European Union," Macroeconomics 0004043, EconWPA.
- Philip Arestis & Kevin McCauley & Malcolm Sawyer, 2000. "An Alternative Stability Pact for the European Union," Economics Working Paper Archive wp_296, Levy Economics Institute.
- Augusto Graziani, 2002. "The Euro: An Italian perspective," International Review of Applied Economics, Taylor & Francis Journals, vol. 16(1), pages 97-105.
- Olivier Blanchard, 2007. "Adjustment within the euro. The difficult case of Portugal," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 6(1), pages 1-21, April.
- 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.
- Jacopo Ponticelli & Hans-Joachim Voth, 2012. "Austerity and Anarchy: Budget Cuts and Social Unrest in Europe, 1919-2008," Working Papers 676, Barcelona Graduate School of Economics.
- Jacopo Ponticelli & Joachim Voth, 2011. "Austerity and anarchy: Budget cuts and social unrest in Europe, 1919-2008," Economics Working Papers 1342, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2012.
- Ray Barrell & Sylvia Gottschalk & Dawn Holland & Ehsan Khoman & Iana Liadze & Olga Pomerantz, 2008. "The impact of EMU on growth and employment," European Economy - Economic Papers 2008 - 2015 318, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
- repec:ebl:ecbull:v:6:y:2008:i:25:p:1-11 is not listed on IDEAS
- Corrado Andini, 2008. "Portugal and the competitive disinflation: let the data speak," Economics Bulletin, AccessEcon, vol. 6(25), pages 1-11.
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