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 with the German lack of enthusiasm for a big stimulus. To give the reader the feel for this apoplexy: Continue reading