He found out their math and assumptions were faulty. However, they maintain the basic conclusion is not affected.
IN YOUR FACE, EUROPE!
Well the debate between pro and anti austerity camp has been going on since... forever.
I have read the latest Krugman's book but I don't think any mathematical 'proof' will help either side of the camp.
I'm not in the pro austerity camp, but I believe the fundamentals, that precarious spending fueled by debt will not bring any good.
Its just delaying the time bomb to explode later.. probably forcing a country to default.
The funny thing about Europe is that if you look at the sick countries, you will know who is 'right'.
These three countries have lots of natural resources, which fuel their growth rate.They had also excluded data from Canada, New Zealand, and Australia — all countries that experienced solid growth during periods of high debt and would thus undercut their thesis that high debt forestalls growth.
Countries that do not have that much natural resource need the austerity measures.
I eats, shoots & leaves
Europe's idea of austerity is not even close to the daily reality faced by millions of Asians living in poverty.
In a BBC (or CNN) programme on Greek crisis, they sent a reporter to meet and interview ordinary Greeks.
One of the Greeks own a business, a nice landed residential property and 2 cars - a Porsche and a Mercedes model A class.
What is this Greek's idea of austerity? Now he has to give up the Porsche and only own the Mercedes model A class.
A Greek lady was interviewed. This Greek lady has bought a new condominium.
Now she worries that the Greece government won't continue to give goodies to help her continue to pay for the new condominium.
This is her idea of austerity.
Last edited by ricohflex; 21st April 2013 at 06:04 PM.
problem is, governments never explain clearly whatever they're doing
I think your friend is trying to say those people and their policy is too incomprehensible.Originally Posted by UncleFai