Thursday, 8 September 2011

Excellent articles by Martin Wolf and Robert J Shiller on the flawed thinking behind government austerity drives in the midst of crisis

Senior Financial Times columnist Martin Wolf today: "What is to be done? To find an answer, listen to the markets. They are saying: borrow and spend, please. Yet those who profess faith in the magic of the markets are most determined to ignore the cry."

Yale Economics Professor Robert J Shiller: "The lesson is simple: We should worry less about debt ratios and thresholds, and more about our inability to see these indicators for the artificial – and often irrelevant – constructs that they are."

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