bt Thomas Fazi
Europe’s post-crisis response – consisting of a combination of fiscal austerity, neoliberal structural reforms and expansionary monetary policies – has unambiguously failed. In early 2016 – eight years after the outbreak of the financial crisis – the eurozone’s overall real GDP was still below the pre-crisis peak (March 2008). The Greek economy was 27.6 per cent smaller. Spain’s was 4.5 per cent smaller. Portugal’s was 6.5 per cent smaller. Even those countries with above-average eurozone growth were not performing very well: Germany, for example, was only 5.5 per cent larger than it was in March 2008, while France was only 2.7 per cent larger. Meanwhile, most of the world has returned to, or surpasses, pre-crisis GDP levels.
Overall, the euro area has experienced a stagnant – below 2 per cent – annualised growth rate since the beginning of 2012 (following a brief post-crisis recovery), averaging 1.6 per cent in early 2016. A very slight acceleration is expected in 2017. Over the same period (2012-16), various countries – such as Greece, Italy and Portugal – have experienced near-zero or even negative growth rates. The ECB’s policies – quantitative easing, negative interest rates, etc. – have not provided much of a stimulus, and cannot be expected to do so in the future. What this means is that the ‘euro crisis’, in purely macroeconomic terms, has been far worse than the Great Depression of the 1930s, when it took European countries on average four to five years to return to pre-crisis GDP levels……
Thomas Fazi ja Bill Mitchell kirjutavad koos raamatut.