Saving the euro and deflation: urgent fiscal expansion

Simon Wren-Lewis writes about the misunderstanding about the way politicians tackling deflation in the euro area. The increase in the primary surplus in the budget at the same time a negative output gap in the central EU countries (Netherlands, Belgium, France, Austria, Finland), shows the inadequacy of the macroeconomic policies.
P P Yolanda:
so stresses that policy in the present moment, of course, is not a fiscal consolidation, but fiscal expansion and boost the economy. Blogger for this relies on the results of Simon Wren-Lewis, who in the case of the Central government of the EU reveals the negative output, which request the fiscal expansion.

bankrotI can agree with in principle are written. Only that we have to take it in the lease, if he survived to the end of the euro, he starved and slowly dying, the South of Europe. Coexistence of both is virtually impossible. In doing so, the ideological and political postulates cannot be relied on and does not not rely. It’s only a matter of time when social conditions forced the euro group and the EU as a whole to readjust radically consideration and action by the reform may also be referred to as peaceful. Clothing that is sewn together for Germany and a group of other ‘successful States of the Northern’ they can’t not to wear and not wear the country’s South.

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