The Germans Have Learned Nothing

by Andreas Hoffmann Ever since the beginning of the EMU crisis, politicians, journalists and economists have blamed Germany’s "fiscal austerity" for the prolonged troubles in Europe’s periphery. If only the Germans spent more on goods and services, so the idea, the people in the periphery countries of Europe could sell more stuff. Exports would help … Continue reading The Germans Have Learned Nothing

Austerity in Germany – A Keynesian Case

by Andreas Hoffmann* The positions about economic policies could not have been more divided between Germany and the US during the latest G-20 summit. On the one side, Barack Obama pushed Keynesian arguments about the need for further stimulus and the danger of austerity measures for economic recovery. On the other side, Miss “No” is … Continue reading Austerity in Germany – A Keynesian Case

Germany’s Foolish Idea

by Mario Rizzo   An elementary lesson of economics is this: If the benefits of an action accrue to the agent but many of the associated costs can be shifted to another party, there will too many such actions.  Consider now Greece. Its welfare state is out of control. The effects of this fiscal problem threaten … Continue reading Germany’s Foolish Idea

Angela Merkel Continues Her Reisistance to “Crass Keynesianism”

by Mario Rizzo Macro-policy economists are in a bad way. They cannot stand dissent. The New York Times reports that Angela Merkel's government refuses to start spending as if it were going out of style. She sees the current crisis as the result of distortions caused by excessive and misdirected credit. Paul Krugman has also expressed frustration … Continue reading Angela Merkel Continues Her Reisistance to “Crass Keynesianism”