%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