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Macroeconomics 5e and FlipIt for Macroeconomics. Macroeconomics and LaunchPad for Macroeconomics. Nor do the Germans like hearing that they are the biggest beneficiaries of the euro. Much of the easy money that poured into Greece, Spain and other peripheral countries went to buy German subway trains, Volkswagens, BMWs and other exports, which is what brought the German economy out of the doldrums after the costly reunification with the formerly Communist East Germany.
And much of the bail-out money they hate to hand out to those they see as shiftless southerners comes back to pay good German bankers. Why are the Germans so mad at the Greeks and not at their own bankers? That is a question more Germans need to ask themselves. I thought it was obvious from the beginning that this is never going to work.
How many years is that supposed to take…?
Are they enough? Krugman: This is a water pistol against a charging rhinoceros. This is ridiculous. Spiegel : More stimulus also means more debt.
Many European nations, as well as the US, are already drowning in debt. If you slash spending, you just depress the economy further. And, given the low interest rates and what we now know about long-run effects of high unemployment, you almost certainly actually even make your fiscal position worse.
Give me a strong-enough economic recovery that the Fed is starting to want to raise interest rates to head off inflation — then I become a deficit hawk. Krugman even quoted the master to his clearly discomfited German interviewers. Selling his new book like the professional he is, he gave a scholarly lecture Tuesday to a packed house at the London School of Economics and then appeared on several BBC current affairs programs. To get a taste, take a look at the highly regarded Newsnight , where he nimbly dispatched two high-powered government defenders.
Large economies are not individual households, Krugman schooled them. My spending is your income, and your spending is my income.