*Since the European Union discovered that its dance with - TopicsExpress

*Since the European Union discovered that its dance with long--term austerity didnt bring economic prosperity, it announced on Wednesday that it would take a page out of our playbook and implement qualitative easing. Its about time! Dr. Krugman discusses the mistakes the EU made after the 2008 recession. If the U.S. had full embraced austerity, as some congress-members and Americans wanted us to do, the u.S. wouldnt be leading the world in economic recovery today. Understanding economics in very important, especially macroeconomics. NYT:The terrible thing is that Europe’s economy was wrecked in the name of responsibility. True, there have been times when being tough meant reducing deficits and resisting the temptation to print money. In a depressed economy, however, a balanced-budget fetish and a hard-money obsession are deeply irresponsible. Not only do they hurt the economy in the short run, they can — and in Europe, have — inflict long-run damage, damaging the economy’s potential and driving it into a deflationary trap that’s very hard to escape. Nor was this an innocent mistake. The thing that strikes me about Europe’s archons of austerity, its doyens of deflation, is their self-indulgence. They felt comfortable, emotionally and politically, demanding sacrifice (from other people) at a time when the world needed more spending. They were all too eager to ignore the evidence that they were wrong. And Europe will be paying the price for their self-indulgence for years, perhaps decades, to come.

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