Jeffrey Sachs: We Need to Think About the Long-run
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December 26, 2012 - 2:24am
by Dirk Ehnts, Econoblog101
Jeffrey Sachs' article Today’s challenges go beyond Keynes appeared in the FT last week as part of the A list. He should be removed from the list.
The crisis in southern Europe is often claimed by Keynesians to be the consequence of fiscal austerity, yet its primary cause is the countries’ and eurozone’s unresolved banking crises.
Well, the Icelanders fixed their banking crisis and they grow at 3%. European periphery was given austerity instead of a resolution of their – or better, our European – bank problems. I do not know any Keynesian who says that the crisis is caused by austerity alone. Jeffrey Sachs attacks an unidentified straw man – again.
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