Austerity has been an utter disaster for the eurozone

All of the suffering in Europe inflicted in the service of a man-made artifice, the euro is even more tragic for being unnecessary, writes Joseph Stiglitz

If the facts dont fit the theory, change the theory, goes the old adage. But too often it is easier to keep the theory and change the facts or so German chancellor Angela Merkel and other pro-austerity European leaders appear to believe. Though facts keep staring them in the face, they continue to deny reality.

Austerity has failed. But its defenders are willing to claim victory on the basis of the weakest possible evidence: the economy is no longer collapsing, so austerity must be working! But if that is the benchmark, we could say that jumping off a cliff is the best way to get down from a mountain; after all, the descent has been stopped.

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