Friday, May 17, 2013
James Galbraith's Plan for Europe
Jamie Galbraith thinks that what Europe needs is not a stimulus plan but a "stabilization plan." Specifically, he thinks that the Eurozone needs an expansive social protection plan, like Social Security in the U.S., providing equal benefits to all member countries' citizens and financed jointly by contributions from each. The word "stimulus," he says, gives the wrong idea of what true Keynesian economics is about, which is smoothing across the business cycle.