%X 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’. %O This version is the version of record. For information on re-use, please refer to the publisher’s terms and conditions. %D 2013 %I Centre for Economic Policy Research (CEPR) %A Y Ji %A DG Paul %T Panic-driven austerity in the Eurozone and its implications %L discovery10053745