Portugal -Change the policy that creates a nightmare -May 27, 2013

In his regular Blog in the New York Times Paul Krugman comments on a FT-publication about the difficult situation that Portugal is in. The classical answer to this kind of problems would be expansionary monetary and fiscal policy. Without its own currency this in no option. His alternative is a much stronger expansion in the euro area as a whole and higher inflation in the European core. Looser monetary policy could help achieve these things, and as much help as possible from fiscal policy too — not a situation in which austerity in the periphery is reinforced by austerity in the core.

English: http://krugman.blogs.nytimes.com/2013/05/27/nightmare-in-portugal/

http://www.ft.com/intl/cms ...


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