May 15, 2014

Krugman admits he his wrong!

Krugman poo-poos the sense that Europe is back on track. He says while no disaster has happened still the very slow growth is a terrible thing. The back story is that he has been advocating for less austerity for many years but still Europe did not have looser monetary policy. The promise from those in power in Europe is that growth would come from higher confidence in the economy since they kept inflation down but Krugman's point is that growth did not result.

In this same post Krugman also admits that he was WRONG that the euro zone would split up. Back in 2012 he said it would happen in a matter of months.

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