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Austerity in the Euro area: The sad state of economic policy in Germany and the EU

  • Truger, Achim
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    The Euro area is currently going through its worst period of recession and economic stagnation since the Great Depression and World War II. The article tries to give an impression of the extraordinary degree of fiscal austerity and the devastating economic effects it has already had and must be expected to have in the near future. In addition it is argued that both the lack of economic justification and the devastating consequences of the fiscal policies currently executed should have been absolutely obvious even from a mainstream perspective. Therefore the sad state of economic policies in the Euro area is that it did not even follow moderate mainstream proposals but instead seemed to rely on radical and outdated theoretical or purely ideological foundations. Germany as the most economically and politically influential member state of the Euro area seems to be most infected by such radical ideas.

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    File URL: http://econstor.eu/bitstream/10419/75290/1/749876956.pdf
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    Paper provided by Berlin School of Economics and Law, Institute for International Political Economy (IPE) in its series IPE Working Papers with number 22/2013.

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    Date of creation: 2013
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    Handle: RePEc:zbw:ipewps:222013
    Contact details of provider: Web page: http://www.ipe-berlin.org/

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    1. repec:thk:rnotes:3 is not listed on IDEAS
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    16. Willi Leibfritz & Rolf H. Dumke & Albert Müller & Wolfgang Ochel & Michael Reutter & Frank Westermann, 2001. "Finanzpolitik im Spannungsfeld des europäischen Stabilitäts- und Wachstumspaktes : zwischen gesamtwirtschaftlichen Erfordernissen und wirtschafts- und finanzpolitischem Handlungsbedarf," ifo Beiträge zur Wirtschaftsforschung, Ifo Institute for Economic Research at the University of Munich, number 5.
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