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.

1 comment:

James Brown said...

I just read that article-interview on Rue89 with this post: http://blogs.the-american-interest.com/wrm/2013/05/16/bulgarian-fraud-threatens-the-eu-welfare-state/

Big question: nice idea, but will the voters go for it?