In Part 1 of this 2-part series on the growth/austerity issue, the interaction between Europe and the IMF was examined. Here, I examine how the issue is “framed in China and the US.
This article is the first in a two-part series on the Austerity/Growth debate. Part 1 focuses on the interaction between the IMF and Eurozone countries. The second will focus on the debate in China and the US.
The Cyprus Crisis is just another vivid example of how dysfunctional the Eurozone has become. It is hard to predict what will happen next. But there will be many more crises that ultimately lead to the breakup of the Eurtozone.
The Greek case shows what can happen if austerity policies are imposed too soon. What lessons from Greece apply to the US? And should a transaction tax be applied to all bank trades?