In Europe, time for true austerity
Talks to form a coalition government in Greece collapsed again this week as a result of the country's belt-tightening backlash. The country now faces an unpleasant dilemma: agreed-upon austerity measures in exchange for bailout funds, or a messy default and exit from the Eurozone. Greece's deteriorating situation raises many questions about whether austerity is the right path for other struggling European nations trying to avoid this same fate.
For several years now, European governments have tried versions of austerity — usually understood as an attempt to reduce the ratio of government debt to gross domestic product — in hopes of reviving the continent's flailing economies.… Seguir leyendo »