Wednesday, 2 February 2011

Nobel Winner says UK Austerity "Disastrous"

Joseph Stiglitz, the Nobel winning economist ..

..has hit out at the austerity hysteria affecting European economies.

Criticising the "excessive austerity" that seems fashionable in Europe, he says;
"...There’s this disastrous policy that even in the countries that don’t need to have austerity...such as the U.K., ....are going for much more excessive austerity than they need ......We are already seeing around Europe the consequences of this austerity. The clear implication is that growth will be slower...."
Pointing out the effects of austerity in Ireland and Greece he says....
"While both those nations had “no choice” but to tighten fiscal policy, measures adopted by some other countries such as the U.K. aren’t justified...... Britain, where the economy contracted in the fourth quarter, is already seeing the fallout....".
Stiglitz, who is a highly respected and influential practicing economist and comentator, contrasts the position in Europe and the USA, where austerity is less fashionable and growth seems to be more established.