Open Cyprus in Europe

Bridges towards Europe through social media conversations

Cyprus- Why Krugman got it wrong

Welcome back an to industrious Cyprus

Η πελλάρα εν ΠΟΛΛΩΝ λογιών

Much like the the last time I disagreed with Krugman, disagreement is of the “yes, but” variety. The last time, he was telling off austerity, but I doubt he had in mind economies in which (shockingly wasteful) state spending reaches 54% of GDP. This is taxes and spending on a very long list of things like the 42 architects employed for 30 years -with regular pay hikes and promotions- to build dams.

We were done building dams 20 years ago.

Likewise, everything he says about Cypexit, stands correct on its face. There is no doubt that the Euro translates to deep recession for Cyprus, especially after the horrific Eurogroup idea to propose losses on depositors in order to stave off a banking crisis. I’ve wondered before if this was sheer stupidity or bad intentions.

But then again, Krugman suggests that “leaving the euro, and letting the new currency fall sharply, would…

View original post 711 more words

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Information

This entry was posted on March 28, 2013 by in Direction and tagged , .

Connections & Content

Rel Publisher

Ending of PresidencyDecember 31st, 2012
Cyprus presidency of the Council of the European Union

Flickr Photos

More Photos
%d bloggers like this: