Thursday, May 31, 2012

Krugman: Greece will leave the Euro

Paul Krugman is in London this week and he was interviewed by BBC's Hardtalk (see following link) where he stated that he thinks Greece will leave the Euro: 
http://news.bbc.co.uk/2/hi/programmes/hardtalk/9725121.stm

At a lecture on Tuesday night he gave a withering attack on the British coalition government for its austerity policy. Speaking to the BBC Today radio program, Krugman said the economy is "failing dismally yet the government is insisting it will not change course", something he believes comes down to the "vanity of politicians".  Pursuing austerity is "a deeply destructive policy" in a time of economic depression, he told Evan Davis. It is a time where cuts "are simply not good sense" he believes, but admits that with a stronger economy he would "turn into a fiscal hawk".  Krugman also appeared on BBC Newsnight this week - sitting opposite venture capitalist Jon Moulton and Conservative MP Andrea Leadsom. http://www.bbc.co.uk/news/business-18281669



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