Germany’s war on Keynes

Austerity’s been the name of the game as Europe fights its sovereign debt crisis. At last night’s EU summit in Brussels, Angela Merkel scored one of her biggest wins yet, pushing through a “debt brake” that’ll force participating countries to keep their federal deficits under 0.5% of GDP. It’s about as anti-Keynesian as you can get, and most American economists would consider it bad policy in a recession.

But there are hardly any Keynesians left in German economics departments. The reason goes all the way back to the Nazis, and beyond.

Read all about it in my story today in The American Prospect.

Merry Christmas, from merry Germany

Wishing you all a happy holiday season — and of course plugging my writing in the process. Here in Germany, as the rest of Europe freaks out about the debt crisis, everything is humming along just fine at Christmastime. Unemployment’s at its lowest level in 20 years, business and consumer confidence is rising, and people are out buying Christmas presents in droves. Here’s a story of mine in the LA Times today on how Germany’s sunny economy informs its outlook on the crisis enveloping its neighbors.

Merkel Is God!

Or so say the German media in the wake of the latest debt deal. Here’s a post I wrote on the love-fest (with caveats) for the LA Times.

%d bloggers like this: