TY - GEN Y1 - 2013/02/21/ TI - Panic-driven austerity in the Eurozone and its implications AV - restricted N2 - Eurozone policy seems driven by market sentiment. This column argues that fear and panic led to excessive, and possibly self-defeating, austerity in the south while failing to induce offsetting stimulus in the north. The resulting deflation bias produced the double-dip recession and perhaps more dire consequences. As it becomes obvious that austerity produces unnecessary suffering, millions may seek liberation from ?euro shackles?. UR - https://voxeu.org/article/panic-driven-austerity-eurozone-and-its-implications ID - discovery10053745 N1 - This version is the version of record. For information on re-use, please refer to the publisher?s terms and conditions. A1 - Ji, Y A1 - Paul, DG PB - Centre for Economic Policy Research (CEPR) ER -